In order to take benefit of sec 68 of receive of amount from relative exempt under sec 56(1) the definition of relative should be fulfilled

Last updated: 25 February 2012

Court :
INCOME TAX APPELLATE TRIBUNAL

Brief :
The short issue in the present appeal by the assessee is with reference to addition of Rs.9,45,000/-, a gift received from the sister of the assessee brought to tax under section 68 of the Income Tax Act. The Assessing Officer was of the view that the assessee did not furnish any creditworthiness of the donor, assessee’s sister who is claimed to be a Dentist in the United Kingdom. The assessee filed additional evidences before the CIT (A) which were not admitted and the CIT (A) confirmed the addition. Before us, the learned Counsel submitted that the Assessing Officer wrongly invoked the provisions of section 68 whereas the amount received from her sister being a relative is exempt under the provisions of section 56(1)(v) which is applicable to the assessment year under consideration. Since the Assessing Officer wrongly invoked the provisions of section 68 on the amount which was not taxable under section 56(1)(v), the addition per se cannot be sustained. It was further submitted that the assessee furnished the relevant evidence with reference to creditworthiness of the donor by an audit certificate dated 28.5.2009 by way of additional evidence which was not admitted by the CIT (A) and therefore, the assessee has no objection if the matter is re-examined by the Assessing Officer. The learned Departmental Representative relied on the orders of the CIT (A).

Citation :
Anita S. Katara 1205 C Wing, Rajeja Sherwood, Near NSE Ground,Goregaon (E)Mumbai PAN – AHBPK 0947 N (Appellant) Vs Income Tax Officer 19(3)(1)Mumbai(Respondent)