Law: Income Tax Act, 1961

Section: 260A

Law: Transfer of Property Act, 1882

Section: 122

JUDGMENT Sanjiv Khanna, J. - This appeal by Sarita Aggarwal under Section 260A of the Income Tax Act, 1961 (Act, for short), pertains to assessment year 1994-95. In the return of income for the said year filed on 11th January, 1995, the assessee (Sarita Aggarwal) had shown credit of Rs. 2,60,000/- in the capital account under the narration 'Gift'. The Assessing Officer disbelieved the claim and made an addition of the aforesaid amount to the income as declared, holding that the assessee was unable to establish genuineness of the gift. However, the assessee succeeded before the Commissioner of Income Tax (Appeals), who by order dated 27th February, 1998, deleted the addition after taking on record additional evidence. Revenue on appeal, has succeeded before the Income Tax Appellate Tribunal ('Tribunal', for short) by the impugned order dated 5th December, 2002. 2. The present appeal was admitted for hearing vide order dated 13th January, 2004, on the following substantial question of law: "Whether the finding arrived at by the Tribunal is perverse in view of the material placed before the Tribunal and the lower authorities?" 3. The short question is whether the assessee had discharged onus and proved genuineness of the gift of Rs. 2,60,000/-. 4. A gift, as defined under Section 122 of the Transfer of Property Act, 1882, is transfer of property made voluntarily and without consideration by a donor to the donee. For a gift to be effective and valid there has to be acceptance of the gift by or on behalf of the donee. Gift of a movable property does not require registration and can be effected by mere delivery of actual or constructive possession. 5. In the assessment order, it is recorded that by order sheet entry dated 10th October, 1996, the assessee was asked to file evidence in support of her claim regarding receipt of gift. The assessee took adjournments and did not file evidence. Order sheet entry dated 23rd December, 1996, narrates that the assessee was again asked to file evidence in support of the purported gift received from a non-resident Indian. On 24th January, 1997, a letter written by Chhatrapalsinh Jadeja, a resident of Mumbai, was filed stating…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492