Commissioner Of Income-Tax, ... vs Mrs. Sunita Vachani
1990 Latest Caselaw 58 Del

JUDGMENT

Kirpal, J.

1. The petitioner seeks reference of the following question of law to this court :

"Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was correct in law in canceling the order under section 263 of the Income-tax Act, 1961, passed by the commissioner of Income-tax as a result of failure on the part of the Income-tax Officer to make any inquiries regarding genuineness of the alleged gifts ?"

2. There were some gifts from abroad which not taxed by the Income-tax Officer. The Commissioner of Income-tax issued notice under section 263 of the Income-tax Act, 1961, and passed an order setting aside the order or Income-tax Officer and directing the Income-tax Officer pass a fresh assessment. The view of the commissioner of Income-tax Officer to that the order of the Income-tax Officer was prejudicial to the interests of the Revenue as the Income-tax Officer had gone into the sources of the gifts and had not satisfied himself about the genuineness thereof.

3. The assessed filed an appeal to the Tribunal went into the facts, saw the balance-sheet of the donors which had been placed on the record and then came to the conclusion that, on merits the decision of the Income-tax Officer to treat the moneys received as gifts was correct and, secondly there was no error committed by the Income-tax Officer and that there was nothing more which he would investigate into than what he had already done. The order of the Commissioner of Income-tax was accordingly, quashed.

4. In our opinion, the Tribunal had, on merits, come to the conclusion that gifts were genuine. This is a pure question of fact. The Tribunal has examined the evidence which was available on the record and has arrived at the money are received by a family in India by way of gifts from strangers from abroad, unless there is something more tangible than suspicion, it will be difficult to regard the money received in India from abroad as representing the income of assessed in India. On the facts as existing on the record, we are unable to come to the conclusion that any question of law arises. The petition is dismissed. No order as to costs.

5. Petition dismissed.