Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2016 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (5) TMI 26 - AT - Income TaxAddition on account of gift - Held that:- The provision of section 56(2)(v) has been amended by inserting clause(v) by Finance Act,2004 and the same was applicable on the transactions taken place between 01.09.04 to 01.04.06 wherein in the present case, the transaction had taken much before the said time i.e. on 02.07.04 therefore, amendment provision of section 56(2)(v) are prospective in nature and not retrospective in nature and thus are applicable w.e.f. 1.09.04. Ld. CIT(A) has applied the amended provision with retrospective effect. This interpretation of CIT(A) is improper and bad in law and is thus unsustainable. Further as per the facts of the present case, a sum of ₹ 2,00,000/- were delivered as gift by Jitesh Mehta to the assessee through account payee cheque and the said amount has been credited in the account of the assessee which means that the gift amount was transferred by Jitesh Mehta to the assessee and the same was also accepted by the assessee. There is no pre condition in section 122 or123 of Transfer of Property Act which defines gift that the donor or donee should be related to each other. However in the Income Tax Act there was an amendment in section 56(2)(v) which was brought into effect by Finance Act, 2004 and was effective from 1st September, 2004. However, in the present case the gift was received before the amendment provision come on to the statute books i.e. 02.07.2004 therefore amended provisions are not applicable to the facts of the case. And even otherwise as per the facts brought out on the record Shri Jitesh Mehta was having friendly relation with the assessee therefore he was competent to give the said amount by way of gift to the asessee. Thus we direct the AO to delete the addition. - Decided in favour of assessee
|