- (1.) THE instant appeal filed under Section 260 -A of the Income Tax Act, 1961 was admitted by this Court on the following substantial question of law: - "(1) Whether the Hon'ble ITAT has erred in law in holding that the assessee had discharged the onus of establishing that the gift of Rs. 10,00,000/ - made in his favour by his brother Dr. Chittranjan Jain was genuine? (2) Whether on the facts and in the circumstances of the case, the Tribunal was right in law in deciding the deletion of addition of Rs. 10,00,000/ - on account of the aforesaid gift,, while the financial capability of the donor and the genuineness of the gift could not be established by the assessee and there was also no evidence before the Hon'ble Tribunal regarding the purpose for which the gift was given?
(2.) THE present controversy relates to Assessment year 1996 -97. The return of income to the tune of Rs. 28,92,297/ - was filed by the assessee in January, 1997 and processed under Section 143 (1) (a) by the Assessing Authority. A notice under Section 143 (2) of the Act was issued and the case was selected for scrutiny. During the course of scrutiny of one of the current account lying in Oriental Bank of Commerce, New Delhi it was found by the Assessing Authority that among other deposits there was a deposit of Rs. 10,00000/ - dated 5.7.1995. The assessee explained the deposit stating that the amount has come as gift from one Dr. Chitranjan Jain. In response of the claim of the assessee, the Assessing Authority had required from the assessee to prove the creditworthiness of Dr. Chitranjan Jain alongwith documentary evidence in support of Rs. 10,00000/ - as gift. The assessee, in response, stated that the amount of Rs. 10,00000/ - received as gift from N.R.E. account. Alongwith response the assessee had submitted a part of transcript of NRE account of Dr. Chitranjan Jain with the City Bank Delhi. As a proof with regard to creditworthiness of Dr. Chitranjan Jain, a copy of income tax return filed in USA was also enclosed. The Assessing Authority had disbelieved the evidence on the ground that response submitted by assessee was only part of transcript of N.R.E. account of the alleged donor. Accordingly, finding has been recorded by the Assessing Authority that it was not sufficient enough to prove the creditworthiness of donor as well as genuineness of alleged gift. Assessing Authority had added the amount of Rs. 10,00000/ - as income from other source. The finding recorded by the Assessing Authority was reversed by the CIT (Appeal) with the finding that the income tax return filed by the assessee was sufficient to prove creditworthiness. The CIT Appeal noted that the donor has mentioned the NRE account, the name of the bank and the cheque number by which the gift was given. The extracts of NRE account were also furnished which indicated that in his NRE account the donor has a sum of about Rs. 40 lacs. Out of this amount, Rs. 10,00000/ - was given to the assessee as gift. The copy of the income tax return of both the donor and his wife filed in USA were also filed. Their income in the year 1995 was US Dollar 1.16 lacs. From perusal of these two returns, CIT Appeal arrived to the conclusion that the assertion of Tribunal was not correct. Accordingly, CIT Appeal deleted the amount of Rs. 10,00000 with a finding of genuine gift transaction between the assessee and the donor. The order passed by the CIT Appeal was reiterated by the ITAT. A finding has been recorded by the ITAT that the creditworthiness of the donor stands proved. Dr. Chitranjan Jain is an American citizen settled in USA for the last 30 years. All these evidences go to show the identity and creditworthiness of the donor as well as the genuineness of the transaction.
(3.) SHRI D.D. Chopra while assailing the concurrent finding of two forum submits that since only a part of transcript of N.R.E was furnished it raises reasonable doubt about the transaction. It is further submitted that burden was on the assessee to prove the creditworthiness before the Assessing Authority with all material and creditworthiness evidence.;