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2013 (11) TMI 617 - AT - Income TaxAddition u/s 56 on account of receipt by the assessee from the HUF of which the assessee was the member - Gift received from relatives - Assessee claims exemption under section 10(2) - Held that:- As per this newly inserted clauses, (a) “relative” means in case of HUF any “member thereof”. Although this subsequent change in the Act do not apply for the year under consideration being incorporated by Finance Act, 2009 but it appears that by insertion of these words Hon’ble Legislatures have visualized the difficulty, hence streamlined the provisions by removing the doubt. We therefore hold that since the assessee-HUF has undisputedly received a gift of Rs.7 lacs from a relative who is an uncle of the Karta of this HUF, i.e.; as per Explanation to sub-clause(iv); “brother or sister of either of the parents of the individual”, hence fall within the category of the “Relative” prescribed in the Act, therefore not chargeable to tax in the hands of the assessee. - Following decision of Vineetkumar Raghavjibhai Bhalodia Versus Income tax Officer, Rajkot Wd. 5(4), Morbi [2011 (5) TMI 584 - ITAT RAJKOT] - Decided in favour of assessee.
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