- (1.) The Revenue has filed IT Appeal Nos. 48, 49, 169 of 1999 and GT Appeal No. 10 of 2004 challenging orders passed by the Income-tax Appellate Tribunal, Chandigarh (for short "the Tribunal"). As the controversy and the substantial questions of law are common to all appeals, facts are being taken from IT Appeal No. 49 of 1999. The dispute in hand, briefly put, relates to the genuineness of two monetary gifts received by the assessee for and on behalf of his daughters on the occasion of their marriage. The gifts, as admitted, were received from Dr. O.S. Gill and Shri B.P. Bhardwaj, by demand drafts, while the assessee was in London. The AO, served a notice under s. 143 of the IT Act, 1961 (hereinafter referred to as "the Act"), addressed queries to the assessee, obtained information through the CBDT, from the Inland Revenue, Great Britain, examined Dr. O.S. Gill but as he was not satisfied with the explanation proffered by the assessee, on the basis of material on record, held that the assessee has not been able to prove the genuineness of the gifts. The AO, therefore, raised an inference, under s. 69A of the Act and held that the gifts represent the income of the assessee and added these amounts to the income of the assessee. A protective assessment was made in the hands of Ms. Monica and Ruchica Oswal.
(2.) The assessee and his daughters filed separate appeals, which were partly allowed by the CIT(A) by accepting the gift made by Dr. O.S. Gill but rejecting the gift made by Shri B.P. Bhardwaj.
(3.) Aggrieved by this order, both the assessee and the Revenue, filed separate appeals. The Tribunal, vide the impugned orders, accepted the appeals filed by the assessee and his daughters but rejected the appeals filed by the Revenue by holding that the assessee has proved the genuineness of the gifts. The Tribunal has held that the Revenue has not brought forth any credible material that would raise an inference under the deeming provision of s. 69A of the Act that the gifts represent the income of the assessee. The appeal against orders imposing gift tax was decided in terms of the order passed by the Tribunal.;