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2017 (10) TMI 628 - AT - Income TaxDistribution of amount out of corpus - assessee is a beneficiary of trust called AADT - whether teared as capital receipt not chargeable to tax - Held that:- We find that the case of the assessee is squarely covered by the decisions referred by the assessee whereas the facts in the cases relied upon by the revenue are distinguishable on facts and law. Accordingly, we hold that the distribution out of corpus funds received by the assessee is capital in nature of capital receipt not liable to tax. Accordingly AO is directed to delete the addition. The ground of appeal by the assessee is allowed. Income from undisclosed sources - gifts received - whether the gift from the company can be treated as gift or unexplained receipt in the hands of the assessee? - Held that:- The gift received by the assessee is permissible and the element of natural love and affection is not relevant and material. We therefore, hold that corporate gift is valid. Accordingly, we set aside the order of ld.CIT(A) and direct the AO to delete the same.
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