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This appeal by Assessee has been directed against the Order of the Ld. CIT(A)-21, New Delhi, Dated 20.07.2018, for the A.Y. 2015-2016, challenging the addition of Rs.2,30,000/- on account of cash gift.
2. Briefly the facts of the case are that return of income was filed by assessee declaring total income of Rs.13,41,000/-. The case was selected for scrutiny. The A.O. on perusal of the record found that assessee had deposited cash amount of Rs.2,30,000/-. Show cause notice was issued. The assessee filed reply stating therein that assessee has received cash gift from his mother Smt. Kamla Jain on different dates and out of the said gift amount of Rs.2,30,000/- had been deposited by the assessee. The assessee has not filed the Gift Deed and only copy of ITR of Smt. Kamla Jain for the A.Y. 2015-2016 was filed. The A.O, therefore, held that the same would not prove the creditworthiness of the donor and genuineness of the transaction in the matter. The A.O. accordingly treated Rs.2,30,000/- as undisclosed income of assessee and made the addition.
3. The assessee challenged the addition before the Ld. CIT(A) and it was submitted that during assessment year under appeal, assessee has sold 1/5th share of ancestral property for Rs.2.80 crores which is acquired through Will of his deceased father and similarly, mother of the assessee/donor has sold her 1/5th share in the above property for a sum of Rs.2.80 crores. The A.O. asked for the source of the cash deposit in the bank account of Rs.2,30,000/- on different dates. The assessee received gift from his mother. Copy of the Sale Deed was filed along with her PAN. Therefore, assessee proved genuineness of the gift in the matter. The Ld. CIT(A) considering the submissions of the assessee in para 6.3 of the Order held as under :
“The contention of the Assessing Officer and the submission of the appellant has been considered and from the bank statement of the mother of the appellant, it is apparent that a cheque of Rs.17,20,000/- was deposited on 27/12/2014 and out of this cash withdrawal of Rs.17,20,000/- was made on 02/01/2015 and Rs.70,000/- on 29/01/2015. This has no nexus with the cash deposit made by the appellant on 28/01/2015 of Rs.30,000/-, 11/02/2015 of Rs.40,000/-, 23/02/2015 of Rs.25,000/-, 03/03/2015 of Rs.30,000/-, 10/03/2015 of Rs.40,000/-, 17/03/2015 of Rs.35,000/- and 24/03/2015 of Rs.30,000/- totaling to Rs.2,30,000/-. From the bank account of the mother it is also apparent that on 26/01/2015 six transfer entries of different amount were made and deposited in the bank account of the appellant. The mother of the appellant also could have easily transferred this amount through bank account by RTGS to the account of the son i.e. appellant.
The preponderance of probability is entirely against the appellant and any prudent person will not transfer money in this manner when both mother and son are having bank account and good banking habit. Just because there is withdrawal of Rs.17,20,000/- on 02/01/2015 and Rs.70,000/- on 29/01/2015 from the mother’s account, the deposit in the bank account of the appellant on various dates could not establish the link as submitted by the appellant. Further, the appellant has failed to file any confirmation from the mother of the appellant regarding the said transaction during assessment, proceedings or during appellate proceedings. As per the submission of the appellant, the appellant has also got Rs.2,80,00,000/- as sale consideration during the year and the appellant has