The Income-tax Return in this case was filed for the assessment year 2003-04 by the assessee on 6 August 2003, declaring total income of ` 13.29,090. The assessee had income from salary, house property and other sources.. The Assessing Officer, on a perusal of the return, found that during the year under consideration, the assessee had received gifts from certain persons particularly three persons. Likewise, immovable assets were also received from two persons. The assessee and her fam-’ ily members received gifts from different persons at different times and these gifts became the subject matter of scrutiny at various levels including the Income-tax Department and additions were made at the ends of the assessee and her family members in different assessment years.
The Assessing Officer recorded in his assessment order that it was surprising that the assessee had gifted the amount out of loan taken from this concern, namely M/s. BBFC. Since there was no occasion for making the. gift, the gifted amount was more than the income of the assessee and that there was no relation between the donor and the donee, the Assessing Officer held that it was only an arranged gift and an accommodation entry.
In a nutshell. the Assessing Officer did not accept the claim of the assessee in respect of the gift of two immovable properties and added the same to the income of the assessee under Section 69 of the IT Act. In the final assessment order the Assessing Officer made additions by not accepting the claim of the assessee. An appeal was preferred by the assessee against this order dated 30 March 2006. During the course of the appellate proceedings, on the written submissions of the assessee some clarification was sought from the Assessing Officer as to the creditworthiness of the donors as well as the financial statement of affairs depicting the net worth of Shri Ashok Jam, Shri Pankaj Jam and Smt. Veena Jam. The Assessing Officer submitted his remand report dated 30 October 2006 and certified the net worth of the donors as on 31st. March, 2002 as under :
1. Shri Ashok Jain ` 1,14,74,817
2. Shri Veena Jain ` 1,32,14,312
3. Shri Pankoj Jain ` 1,36,01,314
On a perusal of the report, it was seen that Shri Ashok Jam had gifted immovable property worth ` 40.68 lakh, Smt. Veena Jam had gifted immovable property worth ` 22.03 lakh and Shri Pankaj Jam had made a gift of ` 2 lakh. These gifts were seen in the light of the net worth and the creditworthiness of the three donors.