TMI Blog2016 (5) TMI 26X X X X Extracts X X X X X X X X Extracts X X X X ..... cts 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sioner of Income Tax (Appeals) ought to have allowed the various contentions of Appellant under the facts and circumstances of the case. 2. Without prejudice to above, The learned Commissioner of Income Tax (Appeals)has erred in relying on provisions of S.56(2)(v) as mended by Finance Act, 2004 without appreciating the fact that the same is not applicable since the same was amended much after the gift was received by the Appellant. The learned Commissioner of Income Tax (Appeals) ought to have allowed the various contentions of appellant under the facts and circumstances of the case. 2. The brief facts of the case are that the assessee is a professional and had filed his return of income declaring total income of ₹ 3,44,77 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... spect, the ld. AR drew our attention to the copy of the confirmation letter from donor, donor s bank passbook/statement, Income Tax Return Copy etc. It was further submitted that the donor belongs to Gujrat and assessee is also from Gujrat and therefore being from the same native place and being Gujraties they have close family relatives they have close among for the last 15 years and therefore there was a good friendship between the parties. 4.1 ld. AR also drawn our attention to the detail submissions made by him before the AO and submitted that the AO had wrongly made additions of ₹ 2,00,000/- received as gift and in this respect CIT(A) has also not considered the submissions of the assessee and had wrongly passed order. As per ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ended to be complied for the exemption of gift for taxability as envisaged under Clause (v) of Explanation to the proviso of sub clause(v) of sub section-2 of section 56 of the Act. Hence, the appellant's all arguments lack on this score for getting exemption from taxability, being gift. Further to that, even I find that when the donor was merely getting salary of ₹ 2.55 lacs p.a. and that too to a person who lost his employment when he was assisted by the appellant. Besides this, in the city of Mumbai when a person is getting a meager sum as salary, it is really difficult to believe that he could save a sum of ₹ 6,70,000/- in one financial year and still gift the sum in the F.Y. 2004- 05 to the appellant as well as to his s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ve been amended by inserting clause (v) in sub-section (2) by Finance Act, 2004 and the for the purpose of convenience of reference, the same is reproduced here under: (v) where any sum of money exceeding twenty-five thousand rupees is received without consideration by an individual or Hindu undivided family from any person on or after the 1st day of September,2004 [but before the 1st day of April 2006], the whole of such sum: Provided that this clause shall not apply to any sum of money received- (a) from any relative; or (b) on the occasion of the marriage of the individual; or (c) under a Will or by way of inheritance; or (d) in contemplation of death of the payer; or (e) from any local authorit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 sta ..... X X X X Extracts X X X X X X X X Extracts X X X X
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