Section 132 read with section 56 the income tax Act, 1961 — Search and Seizure — The plain reading of the provisions of section 56 would indicate that the assessee would fall within the definition of the term “relative” as explained under Section 56. [2020] 53 ITCD 033 (GUJ)
Facts: A search under section 132 was carried out in the cases of Nopany Group, Vadodara on 29th September 2011. It appears that the assessee is connected with the Nopany Group. A search was conducted of the premise of the assessee. A notice under Section153A( a) was issued to the assessee requiring the assessee to furnish the return of the income. It appears that in the course of the search undertaken of the residential premises of the assessee, few documents were recovered. It was revealed that the assessee had received an amount of Rs. 16,00,00,000/[ Rupees Sixteen Crore] by way of a gift from one Shri Narotam Sekhsariya. The donor happens to be the brother-in-law of the assessee. The question before the Assessing Officer was of with regard to the genuineness of the transaction of the gift. It appears that the assessee succeeded before the CIT (Appeals). The CIT (Appeals) took the view that the donor viz. Shri Narotam Sekhsariya would qualify as “relative” within the meaning of Section56( 2)(vi) . The CIT (Appeals) partly allowed the appeal. The revenue being dissatisfied with the order passed by the CIT(Appeals) preferred an appeal before the Income Tax Appellate Tribunal.
The appellate tribunal dismissed the appeal. Being aggrieved, Revenue went on appeal before High Court.
Held, that having heard the learned senior counsel appearing for the Revenue and having gone through the materials on record, we take notice of the fact that the tribunal took into consideration the details of the donor, more particularly, the PAN number, capital gain statement, bank statements and the other relevant documents. Upon perusal of the same, the tribunal concurred with the findings recorded by the CIT (Appeals) as regards the genuineness of the transaction. The tribunal, thereafter, looked into the Section 56 .The plain reading of the provisions of section 56 would indicate that the assessee would fall within the definition of the term “relative” as explained under Section 56. In the overall view of the matter, we are convinced with the reasons assigned by the appellate tribunal. We are of the view that none of the questions of law formulated in the memorandum of the tax appeal could be termed as substantial questions of law. In the result, this appeal fails and is hereby dismissed.