26 April 2012
I received a car, as gift, from my friend on the occasion of my Birthday. It's invoice value in my name is Rs.5,50,000/-. My auditor says that is not taxable in my hands as gift, because the CAR is not included in the definition of the term movable property. Can anyone give the correct view regarding the taxation of this transaction in my hands as per Sec.56 of IT Act?
26 April 2012
Since the car is received from your friend who is not your relative Rs.5,50,0000 would be deemed to your income from other sources in terms of Sec.56(2)(v).every moveable or immoveable property are covered by this section if received without any consideration.
27 April 2012
My auditor says that as per Explanation (d)to sub-clause (vii) of Sec. 56 (2), the term property means the following capital asset of the assessee, namely:—
(i) immovable property being land or building or both;
(ii) shares and securities;
(iii) jewellery;
(iv) archaeological collections;
(v) drawings;
(vi) paintings;
(vii) sculptures
(viii) any work of art
[(ix) bullion
In this no where it is mentioned that CAR is included in the movable property
CAclubindia
