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Facts
The Revenue challenged the CIT(A)'s decision to delete an addition of ₹1,21,00,000/- made by the Assessing Officer (AO) treating cash gifts from the assessee's brothers-in-law as unexplained cash credits under Section 68. The AO's primary reason for doubt was the non-production of gift deeds by the assessee.
Held
The Tribunal upheld the CIT(A)'s order, finding that the assessee had provided sufficient evidence including donor confirmations, financial statements, ITRs, and balance sheets. The Tribunal also noted that the gifts were from relatives and thus exempt under Section 56(2)(vii), and the assessee had discharged the onus regarding the identity, genuineness, and creditworthiness of the donors.
Key Issues
Whether cash gifts received from relatives are to be treated as unexplained cash credits under Section 68, and if so, whether they are taxable under Section 56(2)(vii) of the Income Tax Act, 1961.
Sections Cited
68, 148, 143(2), 142(1), 139(1), 115BBE, 56(2)(vii)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “C” BENCH, KOLKATA
Before: SHRI RAJESH KUMAR, AM & SHRI PRADIP KUMAR CHOUBEY, JM
This is an appeal preferred by the Revenue against the order of the National Faceless Appeal Centre, Delhi (hereinafter referred to as the “Ld. CIT(A)”] dated 27.12.2024 for the AY 2017-18.
The only issue raised by the Revenue is against the order of ld. CIT (A) deleting the addition of ₹1,21,00,000/- as made by the ld. AO u/s 68 of the Act in respect of cash gifts received from donors by treating the same as unexplained cash credit u/s 68 of the Act.
5.2.1. I have gone through the assessment order as well as the submission of the assessee. On examining the same, it is noticed that during the year under consideration, the assessee had received two cash gifts from two persons namely Mr. Mojibur Rahaman Biswas & Mr. Latifuddin of Rs.75,00,000/- and Rs.46,00,000/-, totaling to Rs.1,21,00,000/-, who are own brothers-in-law of the assessee. During the asst. proceedings, the AO had asked the assessee to prove the genuineness and source of such cash gift. It is noticed that the assessee had furnished all the relevant details and documents in respect of such cash gift during the asst. proceedings viz. confirmations from the doners, their financial statements, copy of ITRs of these persons, PANs, Registered addresses, balance sheets reflecting such gifts to the assessee etc. However, it is also observed that the assessee had not provided gift deed to the AO. On the basis of the same, the AO is found to be opined that the cash gift of Rs.1,21,00,000/- as bogus and the assessee’s own money. Hence, the said amount was added back to the total income of the assessee u/s 68 of the Act. 5.2.2. In the Income Tax Act, 1961, the section deals with taxability of gifts is section 56(2). More specifically, if the gift was given in the period 01.10.2009 to 31.03.2017, the striking section is 56(2)(vii). Hence, there is a need to mention the relevant portion of the said section: “(2) In particular, and without prejudice to the generality of the provisions of sub-section (1), the following incomes, shall be chargeable to income-tax under the head Income from other sources", namely :— ……….. (vii) where an individual or a Hindu undivided family receives, in any previous year, from any person or persons on or after the 1st day of October, 2009 but before the 1st day of April, 2017,— (a) any sum of money, without consideration, the aggregate value of which exceeds fifty thousand rupees, the whole of the aggregate value of such sum; ………….. Provided further that this clause shall not apply to any sum of money or any property received— (a)from any relative; or (b)on the occasion of the marriage of the individual; or (c)under a will or by way of inheritance; or …………..
In the result, the appeal of the revenue is dismissed.
Order pronounced in the open court on 20.01.2026.