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The Tax Publishers2020 TaxPub(DT) 0584 (Chd-Trib) : (2020) 180 ITD 0749 : (2020) 203 TTJ 0242 INCOME TAX ACT, 1961
Section 68
Where period of retention of amount for eight months was not unusually large so as to doubt the genuineness of the same and source of amount with the donor was not doubted, nor had Revenue pointed out or brought on record any fact showing the usage of the said amount by the donor prior to gifting, therefore CIT(A) was not justified in its action against assessee and AO was directed to delete the addition made by AO.
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Income from undisclosed source - Addition under section 68 - Unexplained cash credit -
AO made addition of Rs. 60,40,780 being cash deposited in the bank account of assessee on account of the source of the same remaining unexplained. CIT(A) restricted the same to Rs. 19,17,000 deleting the balance on considering the submissions made by assessee along with additional evidences filed to substantiate the same. Assessee stated that it had been explained to CIT(A) that source of the cash deposits was money received from his father and out of his own savings and it was explained to CIT(A) also that source of the same with the father was the money he got from selling his agricultural land, his past savings and money taken on loan by him. Held: There was nothing extraordinarily unusual or abnormal in the fact of retaining money for sometime before gifting it even if to the son, since there are various considerations which are involved in making a gift and it was up to the donor to decide when and to whom to make the gift. The period of retention of amount for eight months was not unusually large so as to doubt the genuineness of the same. The source of amount with the donor was not doubted, nor had Revenue pointed out or brought on record any fact showing the usage of the said amount by the donor prior to gifting. Therefore, CIT(A) was not justified in its action against assessee.
REFERRED :
FAVOUR : In assessee's favour
A.Y. :
IN THE ITAT, CHANDIGARH BENCH
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