Supreme Court on N R I Gifts

[pkhodaskar]

Apex Court decision on NRI gifts is attached.

[probal_shome]

Hi,

Thanks for the update.

Interesting how the SC, even while deciding against the assessee held that the opinion of the Assessing Officer for not accepting the explanation offered by the assessees as not satisfactory is required to be based on proper appreciation of material and other attending circumstances available on record. The opinion of the Assessing Officer is required to be formed objectively with reference to the material available on record. Application of mind is the sine qua non for forming the opinion.

It was further held that:

"It is true that even after rejecting the explanation given by the assessees if found unacceptable, the crucial aspect whether on the facts and circumstances of the case it should be inferred the sums credited in the books of the assessees constituted income of the previous year must receive the consideration of the authorities provided the assessees rebut the evidence and the inference drawn to reject the explanation offered as unsatisfactory."

I am perplexed about this. If the explanation is rejected as unsatisfactory, where is the question it still being 'inferred' whether the sums are income or not or of the assessee rebutting the evidence and inference drawn (given that his explanation has already been found unsatisfactory)?

How can it be said: "Yes the explanation is unsatisfactory but yet the cash credit cannot be added as income!"?

If anyone has a practical explanation of how this would work, I would be most grateful.

Regards,

Probal.

[patil]

i see the point but i am not knowing a answer  ??? hope some wise guru will give light on problem  :-\