Radhey Shyam Bhatia vs Commissioner of Income Tax and Others

Dr. Satish Chandra, J—The present appeal is filed by the assessee against the impugned order dated March 9, 2007, passed by the Income-tax Appellate Tribunal, Delhi (Meerut camp) in I.T.A. No. 448/Del/2006 for the assessment year 2002-03. The brief facts of the case are that during the assessment year under consideration, the assessee has shown that his minor children, namely, Vrinda and Krishna had received following gifts:

The Assessing Officer has rejected the gifts. However, the Commissioner of Income-tax (Appeals) has accepted the gifts and deleted the addition. But in a second appeal filed by the Department, the Tribunal has restored the order passed by the Assessing Officer. Not being satisfied, the assessee has filed the present appeal.

After hearing the rival submissions and on perusal of material available on record, it appears that all the donors are in relation of the assessee and the gifts were made out of love and affection. The details of each donor''s return was produced before the Assessing Officer, as all the donors were the income-tax assessees. When it is so then the creditworthiness is proved. The amount was reflected in the books of account. Thus, in the instant case, the identity of the donors has been proved. The transfer of the amount was voluntarily and the amount was transferred by way of entries, so the genuineness of the transaction has been proved. Hence, in the peculiar facts and circumstances of the case, the gifts appears genuine. Also by looking to the amount involved, we accept the gift as genuine. All the ingredients of valid gifts have been proved in the instant case.

In view of the above, we find no reason to interfere with the order passed by the first appellate authority and the same is hereby sustained along with the reasons mentioned herein. The impugned order passed by the Tribunal is hereby set aside. In the result, the appeal filed by the assessee is allowed at the admission stage.