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2012 (10) TMI 93 - ITAT MUMBAIGift of India Millennium Deposit (IMD) - whether gift of IMDs can be equated with gift of money and thus brought within the purview of s. 56(2)(v)? - Held that:- The AO has equated the IMDs with bank fixed deposits and concluded that the same is money. On perusuing the terms and conditions of the IMDs and the various restrictions placed upon the free transferability of the IMDs. It is true that no restrictions apply to the transferability of money, which is currently accepted as a medium of exchange. Thus, IMDs, which have these restrictions, cannot be treated as money. At the best they can be treated as anything convertible into money. For that matter, any property whether movable or immovable can be converted into money but the same is not treated or akin to money. This is precisely the reason that an amendment has been brought by the Finance Act 2009 for bringing within the purview of tax, the gifts in kind. However, the amendment is prospective in nature and applies to transactions on or after 1.10.2009 - assessment year in this appeal is 2006-07 - decided against revenue.
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