Court No. - 37 Case :- INCOME TAX APPEAL No. - 408 of 2008 Appellant :- Raghuvir Singh Kalra Prop. M/S Shakti Financers Respondent :- Commissioner Of Income Tax Counsel for Appellant :- R.S. Agarwal Counsel for Respondent :- C.S.C. Hon'ble Tarun Agarwala,J. Hon'ble Vinod Kumar Misra,J. We have heard Sri R. S. Agarwal, learned counsel for appellant and Sri Krishna Agrawal, learned counsel for Income Tax Department. This appeal arises for assessment year 2000-01. Several questions of law have been framed in paragraph-17 of Memo of Appeal. After considering them, we are of opinion that no substantial question of law arises for consideration, inasmuch as proposed questions relate to additions made for assessment, which are based on finding of facts and on which no substantial question of law arises for consideration. However, in our opinion, one such question of law arises for consideration, namely, "whether on facts and circumstances of case, tribunal and other authorities were justified in holding that there was no material on record to suggest that there was (2) genuine gift made in favour of appellant by Shankar Singh to tune of Rs. 1 lac." In this regard, essential ingredients contemplated under Section 68 of Income Tax Act is identity, creditworthiness and genuineness of transaction given by donor, which is required to be considered. Having heard learned counsel for parties and upon perusal of orders passed by Assessing Officer, first Appellate Court as well as by Tribunal, we find that Shankar Singh was produced before Assessing Officer, who not only appeared but also gave his statement under Section 131 of Income Tax Act indicating that his annual income was 2.5 lacs and being agriculturist has landed property to extent of 4 Bighas of land, apart from fact that he also tills field of other agriculturists. said person has also intimated that he has bank account and has produced pass-book which shows various entries. Therefore, in our opinion, identity of (3) donor has been proved. It has also come on record that gift of Rs. 55,000 and 45,000 given to assessee on two different dates, were given by bank drafts through banking channels. Once gift is given through banking channels, there is deemed presumption of genuineness of gift. We find from perusal of impugned orders that authorities have not doubted that gift was given through bank draft but what they contend, is creditworthiness of donor and, consequently, rejected claim of assessee on ground that it was not genuine gift. authorities have given reason that sum of Rs. 1 lac could not have been given by Shankar Singh and that source of various deposits made in bank account was not properly explained. We find that specific statement was given by donor that deposits were made in bank account which were sale proceeds of potato which, in our opinion, was sufficiently explained. Once donor has explained nature and source of amount deposited in his account, (4) creditworthiness of transaction stands proved. In light of aforesaid, we are of opinion that three ingredients, namely, identity, creditworthiness and genuineness of transactions were existing. authorities fell in error in rejecting claim of assessee. Consequently, for reasons stated aforesaid, appeal is partly allowed. question of law is answered accordingly in favour of appellant and against department. Necessary modification in assessment order would be carried out by Assessing Officer, accordingly. Order Date :- 1.12.2015 YK (Vinod Kumar Misra,J.) ( Tarun Agarwala,J.) Raghuvir Singh Kalra v. Commissioner Of Income Tax