HARJIT SINGH SALUJA vs. COMMISSIONER OF INCOME TAX DELHI

ITA - 1392 / 2008HC Delhi07 December 20093 pages
For Petitioner: ANIL SHARMA
AI SummaryDismissed

What did the High Court hold?

The Tribunal upheld the addition of the gift amount as unexplained cash credit, finding the transaction to be of a dubious nature. The donor's creditworthiness and financial capacity were found to be insufficient, and the assessee failed to establish the genuineness of the gift.

What were the facts?

The assessee declared a gift of Rs. 2.50 lacs received from Shri Arun Kumar Goyal. The Assessing Officer added this amount as unexplained cash credit, a decision upheld by the CIT(A) and ITAT.

What were the issues?

Whether the gift received by the assessee was genuine and whether the donor had the capacity to provide such a gift.

Which sections of the Income-tax Act were involved?

Section 69-A

AI-generated summary — verify with the full judgment below

% 07.12.2009

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18#

Present:

Mr. Anil Sharma for the appellant.

Ms. Prem L. Bansal with Ms. Anshul Sharma and Mr. Paras

Chaudhry for the respondent.

## + ITA No. 1392/2008

In the return filed by the appellant for the assessment year 2001-02, the appellant had shown gift of Rs.2.50 lacs received by him from one Shri Arun Kumar Goyal through banker's cheque dated 8.5.2000. The Assessing Officer, while framing the assessment, added the aforesaid amount of gift as unexplained cash credit. He did so after inquiring into the creditworthiness of the purported donor. The appellant filed appeal before the CIT(A) and even carried the matter to the ITAT, though unsuccessfully, as both these appellate for a have decided the case against the appellant sustaining the aforesaid addition.

We may, however, note that the ITAT has allowed this addition under Section 69-A of the Income Tax Act, 1961 and not under Section 68 of the Act. From the detailed order passed by the CIT(A) as well as the ITAT, we find that finding of facts are recorded by these authorities in the following manner:-

a) Shri Goyal was a complete stranger to the assessee and was not related to hi

The order continues below.

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