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| The Tax Publishers2020 TaxPub(DT) 4801 (Chen-Trib) INCOME TAX ACT, 1961
Section 56(2)
Addition made by AO on account of gift received by assessee from a partnership firm where he and his parents were partners on the ground of routing of funds to the firm was required to be deleted as amounts had been duly reduced from the capital accounts of the partners and where deposit in assessee's bank account was much after the date of withdrawal from partnership firm.
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Income from other sources - Gift received from parents - Whether routing of founds to firm where assessee and his parents were partners -
Assessee received gifts from his parents. He and his parents were partners in a partnership firm doing the business of real estate. Accordingly, for gift, withdrawals were made by the parents from the partnership firm. AO disbelieved the claim of said gift received on the ground of routing of funds to the firm and made addition accordingly. Held: The perusal of the dates on which the cash was withdrawn from the firm, when considered with the dates on which the amounts have been deposited in the assessee's bank account, clearly shows that the deposits were much after the dates of withdrawals. Even as far as the assessment order, AO does recognize that the withdrawals were recorded. Hence, addition made on account of gift received by assessee from his parents was required to be deleted.
REFERRED :
FAVOUR : In favour of assesse.
A.Y. : 2014-15
IN THE ITAT, CHENNAI BENCH
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