Failure to prove Identity, Creditworthiness and Genuineness of receipt of Gift: ITAT upholds Addition made u/s 68 of IT Act [Read Order]

The two member bench of Delhi Income Tax Appellate Tribunal ( ITAT ) comprising Saktijit Dey, (Vice-President) and  M. Balaganesh, (Accountant Member) while upholding the addition made under Section 68 of the Income Tax Act, 1961  observed that the assessee failed to prove identity ,creditworthiness and genuineness of receipt of Gift received from father in law.

The assessee Sujeet Kumar,is a resident individual and carries on his business of running coaching centers through his proprietary concern, M/s. Fame Institute at Hisar.  In the course of a survey action on the assessee, it was found that he was not maintaining proper books of account for his business.

 As observed by the Assessing Officer, the assessee did not comply with any of the notices issued under section 142(1)/143(2) of the Act. Therefore, the Assessing Officer was compelled to complete the assessment ex-parte to the best of his judgment by invoking the provisions of section 144 of the Income Tax  Act.

Accordingly along with other additions the AO made an addition of Rs. 2,45,000/- made under section 68 of the Act towards the gifts received from the father in law.

Aggrieved, the assessee filed an appeal before the CIT(A). The CIT(A)who upheld the addition.Therefore the assessee filed a second appeal before the tribunal. 

The tribunal observed that the assessee has not furnished any cogent evidence to prove the alleged receipt of gift from father-in-law thus the addition made by the lower authorities was confirmed by the tribunal.

Therefore the  bench dismissed the appeal filed by the assesee.Sandeep Mishra, counsel appeared for the revenu during the appeal proceedings before the tribunal.

Keywords:  Failure, Identity ,Creditworthiness, Genuineness,  receipt, Gift, ITAT,  Upholds Addition, IT Act

To Read the full text of the Order CLICK HERE

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