Andhra Pradesh and
Telangana HC confirms ITAT order to uphold Sec 68 addition for gifts received
by assessee-invidual from his father-in-law for AY 2005-06, rejects assessee's
reliance on co-ordinate bench ruling in context of gift received by assessee
from his maternal aunt; Clarifies that “this is not a case where
we can import the principle 'what is sauce for the goose is sauce for the gander'",
also points out that gift from maternal aunt which was held non-taxable in
view of Sec 56(2)(v), was received after the amendment to Sec. 56(2) unlike
gift from father in law which was received prior, refuses to apply spirit of
said amendment to grant relief; Also rejects assessee’s contention that
genuineness of gift cannot be questioned when the identity of the donor is
established, payment is through banking channels and a letter of confirmation
is also available, clarifies that these three facts could establish the truth
of the transaction, but not genuineness, states that "If somebody has made
payment to someone else, a statement regarding the same will be true. But
the payment need not be genuine."; Takes note of Revenue's contention
that undisclosed income earned by the assessee could have been used for
round tripping and routed through father-in-law to bring it back as gift, also
rejects assessee’s contention that he had no source of income, observing
that assessee was a director of real estate company and therefore, raid was
carried out at his premises:HC
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