Law:

Section:

2008] 304 ITR 145 [2009] 177 TAXMAN 294 (PUNJ. & HAR.) HIGH COURT OF PUNJAB AND HARYANA Tirath Ram Gupta v. Commissioner of Income-tax * ADARSH KUMAR GOEL AND RAJESH BINDAL, JJ. IT APPEAL NO. 167 OF 2005 SEPTEMBER 14, 2006 Section 69A of the Income-tax Act, 1961 - Unexplained moneys - Assessment year 1997-98 - Assessee had received a foreign gift of Rs. 1 lakh from 'D' - As he had failed to explain his relationship with donor, Assessing Officer treated gift as not genuine and made addition of Rs. 1 lakh to assessee's income - Tribunal upheld order of Assessing Officer - Whether a gift cannot be accepted as such to be genuine, merely because amount has come by way of a cheque or draft, through a banking channel, unless identity of donor; his creditworthiness; relationship with donee and occasion are proved - Held, yes - Whether since in instant case there was no occasion for alleged donor to gift huge amount of money to assessee and, moreover, his creditworthiness as well as relationship with assessee were also doubtful, impugned order passed by Tribunal was to be confirmed - Held, yes FACTS The assessee had shown a foreign gift of Rs. 1 lakh from 'D'. The Assessing Officer asked the assessee to explain the gift and his relationship with the donor. The assessee stated that he was neither aware of the business of the donor nor did he remember the donor's real name. The Assessing Officer, thus, taking view that the gift was not genuine made addition of Rs. 1 lakh to the assessee's income. On appeal, the Commissioner (Appeals) reversed the view taken by the Assessing Officer. On further appeal, the Tribunal restored the order of the Assessing Officer. On appeal : HELD A gift is generally given out of natural love and affection and without any consideration, which necessarily denotes the closeness between the donor and the donee. It can be given either on some occasion or to help a relative or a friend. To see the genuineness of a gift, the test of human probability is the most appropriate. A gift cannot be accepted, as such, to be genuine, merely because the amount has come by way of a cheque or a draft through banking channel, unless the identity of the donor;…

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