The Income Tax Appellate Tribunal (ITAT) has recently deleted additions made for cash gifts from close relatives to meet the emergency situation and held that uncle and aunt are considered close relatives of the assessee.
Assessee Shri Ashokbhai Amrutbhai Valand filed return of income under Section 148 of the Income Tax Act 1961 declaring total income of Rs. 1,44,000/-. The Assessing Officer made an addition of Rs. 10,42,000/- and treated the same as unexplained money under Section 69A of the Income Tax Act 1961.Against this order assesee filed appeal before ITAT.
Keyur Bavishi, Counsel for assessee submitted that the amounts received in cash was related to getting Visa and are gifts from relatives of the assessee. Assessee had filed gift deed agricultural receipts and proof of agricultural income of the mother, father and other relatives of the assessee. Moreover cash receipt from these relatives are genuine gift as the assessee was proportionate for obtaining Visa at the particular juncture and therefore, the family of the assessee help the assessee to acquire the same fund.
Alpesh Parmar counsel for revenue contented that Assessing officer after verifying the genuinity of the gifts rightly made the addition in respect of other relatives.
After considering the contention of the both sides the single bench of Suchitra Kamble, (Judicial Member) allow the appeal and observed “It is pertinent to note that to meet the emergency situation of additional expenses by the assessee the assessee has obtained cash not only from assessee’s father and mother but also the close relative that is the maternal uncle, maternal aunt as well as paternal uncle and paternal aunt and the said relation cannot be doubted by the Assessing Officer and the gift offered by this relatives are appears to be genuine.”
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