COMMISSIONER OF INCOME TAX Vs. MONICA OSWAL

JUDGEMENT

(1.) THERE are two gifts of $ 200,000 each by two donors who are not related to the assessee in favour of the assessee's two daughters, through two bank drafts bearing consecutive numbers, issued by the Midland Bank, London, on 22nd March, 1994. Mr. O.S. Gill who is a British citizen and a resident of the U.K. made a gift of $ 200,000 to Ms. Ruchika Oswal. Similarly, Mr. B.P. Bhardwaj, another resident of the U.K. is alleged to have made a gift of $ 200,000 in favour of the assessee's daughter, Ms. Monica Oswal. The assessee had received the two drafts on behalf of his daughters in England, to save gift-tax, the amounts were credited to the accounts of the two donees.

(2.) THE Revenue alleges that the gifts are bogus. The amount of the gifts represents the concealed income of the assessee. The Tribunal has erred in accepting the claim of the respondent-assessee and deleting the addition. The assessee claims that these are valid gifts made by two friends. The Tribunal has recorded a finding of fact. The amount is not his concealed income. Thus, the appeals filed by the Revenue deserve to be dismissed. These are the contending claims of the parties in the three IT appeals filed under s. 260A of the IT Act, 1961.

(3.) THE assessee filed an appeal. Vide order dt. 19th Dec., 1997, the CIT(A) (Central), accepted the assessee's claim in respect of the gift made by Mr. O.S. Gill in favour of Ms. Ruchika Oswal. However, the addition on account of the gift made by Mr. B.P. Bhardwaj to Ms. Monica was confirmed.