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2010 (7) TMI 611 - MADRAS HIGH COURTProfession, Vocation - Income escaping assessment - Gift received from devotees - Business income or Capital receipt - Penalty u/s 271(1)(c) - Held that: - Assessee as a religious head, is not involving himself in any profession or avocation and also not performing any religious rituals/poojas for his devotees for some consideration or other. In fact the Respondent/Assessee is doing charitable work and spiritualization and made his devotees to follow the same for the benefit of man kind. - Assessee's own case in Assessment year 1988-89, the Department has accepted the position that gifts received by him on birthdays and other occasions were not taxable. - ITAT is right in holding that gifts received on Assessee's birthday of Rs.1,75,70,347/- as Capital Receipt and having no nexus with his profession as vocation of religious practice is valid.
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