NEELAMBEN GOPALDAS AGRAWAL Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) BEING aggrieved and dissatisfied with the impugned judgment and order passed by the Income Tax Appellate Tribunal, Ahmedabad Bench (hereinafter referred to as 'the Tribunal') dated 26.08.2004 in ITA Nos. 3609/Ahd/2002, 3610/Ahd/2002 and 3611/Ahd/2002 for the Assessment Years 1996 -97, the assessees have preferred the present Tax Appeals for consideration of the following substantial question of law which were framed while admitting the matters:

(2.) THE assessees were given Rs. 2 lakhs as gift by a nonresident Indian by way of a cheque from his Non Resident External Account. The Assessing Officer held that since the financial capacity of the donor is not proved under section 68, Rs. 2 lakhs is added as unexplained cash credit. On appeal the CIT (Appeals) allowed the appeal.

(3.) MR . J.P. Shah, learned advocate appearing with Mr. Manish Shah, learned advocate for the assessees submitted that the Tribunal has erred in holding that the assessees had not proved the donor to be creditworthy inspite of the fact that he was giving the money from his NRE Account. He submitted that the Tribunal failed to appreciate that there was a receipt of cheque from NRE account backed by Gift Deed executed by the donor and therefore there ought to have been no room for suspicion that these are the unaccountd money of the assessees.