Genuineness of gifts proved by assessee- No addition can be made All the donors

 

Genuineness of gifts proved by assessee- No addition can be made

All the donors appeared before the Department, and submitted material including affidavits on oath, confirmed the gifts made, established their old relations with the assessee and proved their capacity to make the gifts and they personally appeared before the AO, thus, there was no doubt in genuineness of gift. ­

Vide Commissioner of Income Tax v. Ms. Mayawati (2012) 43 (I) ITCL 474 (Del-HC)

ITR Volume 346 Part 3 (Issue dated 20-8-2012)

INCOME TAX REPORTS (ITR)

INCOME TAX REPORTS

Volume 346 Part 3 (Issue dated 20-8-2012)

SUBJECT INDEX TO CASES REPORTED IN THIS PART
HIGH COURTS
Reassessment --Notice after four years--Condition precedent--Failure to disclose material facts necessary for assessment--Amount shown as loan from company--Assessee not disclosing that it had substantial interest in a company--Reassessment proceedings after four years to assess amount as deemed dividend--Valid--Income-tax Act, 1961, ss. 147, 148-- Dishman Pharmaceuticals and Chemicals Limited v. Deputy CIT (OSD) (No. 1 ) (Guj) . . . 228
----Notice after four years--Failure to disclose material facts necessary for assessment--Notice need not specify instances of failure--Sufficient if failure can be inferred--Investigation by customs authorities--Penalty for theft of electricity--Reassessment proceedings valid--Income-tax Act, 1961, ss. 147, 148-- I. P. Patel and Co. v. Deputy CIT
(Guj) . . . 207
----Notice--Validity--Reassessment proceedings found not valid--Reassessment cannot be sustained under another ground not mentioned in notice--Income-tax Act, 1961, ss. 147, 148-- Dishman Pharmaceuticals and Chemicals Ltd . v . Deputy CIT (OSD) (No. 2 ) (Guj) . . . 245
----Reassessment after four years--Assessee disclosing material facts necessary for assessment--Reassessment proceedings to recalculate special deduction under section 80HHC--Not valid--Income-tax Act, 1961, ss. 80HHC, 147, 148-- Dishman Pharmaceuticals and Chemicals Ltd. v . Deputy CIT (OSD) (No. 2 ) (Guj) . . . 245
----Reassessment after four years--Condition precedent--Failure by assessee to disclose material facts--Income from other sources--Claim to deduction of interest against dividend--Fact of borrowings to purchase shares and details of investments disclosed in return and during course of assessment in reply to queries raised by Assessing Officer--Reassessment to disallow deduction on ground interest was not paid for earning dividend but for acquiring controlling interest in company--Not a case of failure to disclose material facts--Reassessment not permissible--Income-tax Act, 1961, ss. 57(iii), 147, 148-- Ketan B. Mehta v . Asst. CIT (Guj) . . . 254
----Reassessment after four years--Condition precedent--Failure by assessee to disclose material facts--Reasons recorded by Assessing Officer must reflect such failure--Reopening of assessment on ground pre-operative expenses capital in nature had been allowed as revenue--Not a case of default by assessee--Reassessment not permissible--Income-tax Act, 1961, ss. 147, 148-- Ashokjyot Oxygen Pvt. Ltd . v . H. N. Patel, ITO
(Guj) . . . 199
----Reassessment after four years--Condition precedent--Failure by assessee to disclose material facts--Reopening of assessment on ground deduction for bad debts erroneously allowed--Not permissible--Income-tax Act, 1961, ss. 147, 148-- V. B. Investments v . Deputy CIT (Guj) . . . 193
----Reassessment after four years--Failure by assessee to disclose material facts--Notice issued to disallow deduction of usance interest paid to non-residents without deduction of tax--No indication of default by assessee--Reopening not permissible--Income-tax Act, 1961, ss. 147, 148-- Priya Blue Industries Pvt. Ltd. v . Deputy CIT
(Guj) . . . 204
----Writ--Powers of High Court--High Court only required to find out if there was prima facie material justifying notice of reassessment--Income-tax Act, 1961, ss. 147, 148--Constitution of India, art. 226-- I. P. Patel and Co. v . Deputy CIT
(Guj) . . . 207
Search and seizure --Assessment of third person--Scope of section 153C--Provision authorises enquiry on satisfaction that valuable articles or documents discovered during search belonged to third person--Such valuable article or document to be handed over to Assessing Officer having jurisdiction over assessee--Not necessary that satisfaction should be recorded that valuable article or document showed undisclosed income--Income-tax Act, 1961, ss. 132, 152A, 153C, 153BD, 158-- SSP Aviation Ltd . v . Deputy CIT (Delhi) . . . 177