Case: Mrs. Jyoti R. Raut Vs DY CIT,CC-1(1), Mumbai
Appeal No. I.T.A. No. 371/MUM/2021
Authority: ITAT Mumbai
Order passed on: 10.08.2022
During the assessment proceedings, the AO noted that the appellant has accepted gift of INR 2,50,000/- from her relative (i.e., her father), during the relevant previous year. The Appellant was asked to prove the identity and creditworthiness of the donor as well as genuineness of the transaction of gift.
The Appellant filed a copy of gift deed and other documents to satisfy the Assessing Officer which included details of landholding of the donor and cultivation on agricultural land, as well as receipt showing the sale proceeds of agricultural produce. However, the Assessing Officer, rejected the same and made an addition of INR 2,50,000/- in the hands of the Appellant holding the same to be non-genuine gift liable to tax in the hands of the Appellant under Section 68 of the Act.
The Appellant carried the matter before the Ld. First Appellate Authority challenging the addition. The CIT(A) dismissed the appeal and confirmed the addition on merits.
Being aggrieved from the order, the appellant has approached the ITAT against the additions made by the AO.
The ITAT held that no reference has been made by the Assessing Officer to any incriminating material while making the assessment. The CIT(A) has also not referred to any incriminating material while confirming the addition and had made a general statement. The Assessing Officer has, in the Assessment Order, recorded that the Appellant had received gift as seen from the details filed during the assessment proceedings.
Therefore, the order passed by the CIT(A) is set aside and the addition of INR 2,50,000/- made by the Assessing Officer under Section 68 of the Act is deleted.
The complete order can be downloaded from this link: https://itat.gov.in/files/uploads/categoryImage/1661847286-ITA%20No.%20366-69%20and%2071%20-Mum-21%20%20Jyoti%20R.%20Raut.pdf
