Onus is on thr assessee to prove the Creditworthiness of the Donor.


section 68

Pandit Vijay Kant Sharma v. CIT

Decision:    Against the assessee.

Income from undisclosed sources–Addition under section 68 — Gift–Assessee failed to establish creditworthiness of donors


Assessing authority noticed that the assessee had shown receipts that gift in the statement of incoming and outgoing details. AO notice that the credit worthiness of the donors is totally doubtful and in this regard the notices were sent to the allege donors through the register post but envelope containing the notice has be receive back with the report “not known”. Subsequently, the income-tax inspector attach with the office of the AO had been depute to get the Notice serve, who had reporte that there are no such persons on the giving address. Therefore AO made addition of gift amount as income of assessee.


There was no illegality in coming to the conclusion. That the present case was fully cover within the parameter of section 68. Assessee had failed in establishing the creditworthiness of the donors. Occasion for making the gifts and why the donors who were strangers and not men of means gifted. Such huge amounts to the assessee-HUF out of love and affection. Therefore, addition made by AO was justified

section 68

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