TMI Blog2023 (5) TMI 480X X X X Extracts X X X X X X X X Extracts X X X X ..... as an income of the partner, rather, the same is taken as a capital receipt. In the case of 'HUF', or to say in the strict sense in case of 'coparcenary', the individual members receive their share on partition. However, during the subsisting coparcenary or to say broadly 'HUF', no member is entitled to receive any definite share out of the income of the 'HUF'. It is left to the prudence and wisdom of the manager who has to manage the affairs of the 'HUF', he may spend the money or property of the 'HUF' in the case of a need of a member, such as on the marriage of a unmarried female member or in case of certain treatment of any disease of the member or in case of educational needs of any ch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Rs.18,00,000/- received as gift from assessee HUF which was exempted u/s 56(2)(VII) of the Act. 2. The Appellant craved leave to add, alter, delete, amend or rescind any of above grounds of appeal as and when necessary with the permission of ITAT. 2. Brief facts of the case are that assessee is an individual filed his income for assessment year 2017-18 on 02.03.2018 declaring total income at Rs.21,35,210/-. During the scrutiny assessment, the Assessing Officer noted that assessee has shown gift of Rs.18.00 lakh from Ranjibhai D. Panchal (HUF), wherein the assessee is a Karta (Manager) of such HUF. The Assessing Officer disallowed and added back the gift to the total income of assessee by taking view that HUF does not fall in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mpt. The Ld. AR for the assessee submits that in both the aforesaid decisions, it is categorically held that HUF is an artificial person of family members who falls within the definition of relative as prescribed under sub-clause (e) of clause (vii) of under section 56(2) of the Act. 4. The ld AR for the assessee submits that assessee has received gift from its own HUF, which is also exempt under section 10(2) of Income Tax Act, thus, the assess may be allowed relief on alternative submissions. 5. On the other hand, Ld. Sr-DR for the Revenue submits that all the submissions and the case law relied by Ld. AR for the assessee has been considered by NFAC/Ld. CIT(A) while confirming the order of Assessing Officer. The Legislature while gi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... perty or income of HUF is not determine, hence, the family as such, is treated as separate entity for the purpose of taxation. HUF is otherwise not recognise as a separate juristic person distinct from who constitute it. A member of HUF has preexisting right in the family property. 8. I find that the division bench in the above case also considered the provisions of section 10(2) of the Act and noted that any sum received by an individual, as a member of 'HUF', which has been paid out of the income of the family or out of the income of the estate of the family is not exigible to taxation. The said exemption has been given on the pattern of a partnership firm to avoid double taxation of the same amount. In the case of partnership ..... X X X X Extracts X X X X X X X X Extracts X X X X
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