Bombay HC Confirms Legitimacy of Foreign Gifts in Income Tax Assessment

CIT Vs Nirav Modi (Bombay High Court) The Bombay High Court heard two appeals filed by the Revenue under Section 260-A of the Income Tax Act, 1961, challenging the common order dated 20 March 2013 passed by the Income Tax Appellate Tribunal (ITAT) for Assessment Years (AY) 2007-08 and 2008-09. The sole legal question raised was whether the Tribunal was correct in cancelling the CIT’s revision orders under Section 263 and whether reliance on the decision in CIT v/s Gabriel India Ltd., 203 ITR 108 was justified. The factual matrix for both years concerned gifts received by the assessee from ab...