SARITA AGGARWAL Vs. THE INCOME TAX OFFICER

JUDGEMENT

(1.) THIS appeal by Sarita Aggarwal under Section 260A of the Income Tax Act, 1961 (Act, for short), pertains to assessment year 1994 -95. In the return of income for the said year filed on 11th January, 1995, the assessee (Sarita Aggarwal) had shown credit of Rs. 2,60,000/ - in the capital account under the narration "Gift?. The Assessing Officer disbelieved the claim and made an addition of the aforesaid amount to the income as declared, holding that the assessee was unable to establish genuineness of the gift. However, the assessee succeeded before the Commissioner of Income Tax (Appeals), who by order dated 27th February, 1998, deleted the addition after taking on record additional evidence. Revenue on appeal, has succeeded before the Income Tax Appellate Tribunal ('Tribunal', for short) by the impugned order dated 5th December, 2002.

(2.) THE present appeal was admitted for hearing vide order dated 13th January, 2004, on the following substantial question of law:

(3.) A gift, as defined under Section 122 of the Transfer of Property Act, 1882, is transfer of property made voluntarily and without consideration by a donor to the donee. For a gift to be effective and valid there has to be acceptance of the gift by or on behalf of the donee. Gift of a movable property does not require registration and can be effected by mere delivery of actual or constructive possession.