Mr. Amitabh gifted a house property of Rs. 2 crore to Miss Aishwarya on 15.03.08. Miss Aishwarya got married to Avishek, son of Mr. Amitabh on 30.3.08. The income from the gifted property was Rs. 5,00,000, which was added by the Assessing officer in the hands of Mr. Amitabh u/s64(1)(vi). Is this inclusion justified in law?
13 December 2010
For applicability of Sec 64(1)(vi) the relation between Mr. Amitabh and Ms. Aishwarya (Father-in-law and Daughter-in-law) should subsist at the time of gift. Ms. Aishwarya became daughter-in-law of Mr. Amitabh only on 30.03.08. Thus there was no such relation between them on the date of gift, i.e. 15.03.08. Therefore the income arising from the gifted house should not be included in the income of Mr. Amitabh. Rather the income should be assessed in the hands of Ms. Aishwarya.
14 December 2010
Income up to 14/3/2008 will be assessed in the hands of Mr. Amitabh. Income from 15/3/2008 will be assessed in the hands of Ms. Aishwarya. Consequently 64(1)(vi)will not attract.
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