Loading judgment…
Facts
The assessee received gifts amounting to Rs. 36,05,000/- from close relatives. The Assessing Officer treated this amount as income from unexplained sources and made an addition, which was subsequently confirmed by the CIT (Appeals).
Held
The Tribunal found that the assessee had provided affidavits from the donors (close relatives), copies of their audited accounts and balance sheets reflecting the gifts, and the creditworthiness of the donors was not disputed by the AO. The DR also failed to rebut these facts. Consequently, the addition made by the lower authorities was ordered to be deleted.
Key Issues
Whether gifts received from close relatives, duly supported by affidavits, reflected in donor's audited accounts, and where donor's creditworthiness is not doubted, can be treated as unexplained income.
Sections Cited
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, CHANDIGARH
Before: SH. SANJAY GARG
आदेश/ORDER
The present appeal has been preferred by the assessee against the order dated 10.06.2025 of the Commissioner of Income Tax (Appeals) NFAC, Delhi [in short ‘the CIT (Appeals)] pertaining to 2017-18 assessment year.
ITA 989/CHD/2025 A.Y. 2017-18 2
The assessee in this appeal is aggrieved by the action of the CIT (Appeals) in confirming the addition made by the AO of Rs.36,05,000/- by the Assessing Officer ( in short ‘the AO’) treating the said amount received from the close relatives as income of the assessee from unexplained sources.
At the outset, the ld. counsel for the assessee has submitted that the assessee had duly furnished the relevant evidences in the shape of affidavits of his close relatives i.e. father, mother, wife, brother and father-in-law, from whom the assessee had received gifts in cash. He has further submitted that the assessee has also furnished the copies of the audited accounts and balance sheet of the donors and the aforesaid amounts of gifts were duly reflected therein. Even the AO has not doubted the credit worthiness of the donors.
The ld. DR could not rebut the aforesaid factual aspects of the case.
In view of this, since the gifts have been received from close relatives and credit worthiness of the donors has also not been doubted and further the amounts of gifts have been duly reflected in audited accounts, therefore, in my view, there is no justification on the part of the lower
ITA 989/CHD/2025 A.Y. 2017-18 3 authorities in making/confirming the impugned addition and the same is accordingly ordered to be deleted.
In the result, appeal of the assessee stands allowed.