Case Law Details
Pendurthi Chandrasekhar Vs DCIT (Andhra Pradesh HC)
Conclusion: AO was not justified in adding the amount of Rs. 73,00,000 to the account of assessee received from maternal aunt as the donor herself had given a confirmation letter clearly stating therein that she had transferred the amount and further declaring that she gave the said gift out of natural love and affection towards her nephew and moreover, the donor being no other than the assessee’s own maternal aunt, who was a ‘relative’ as defined under the Explanation to section 56(2)(v).
Held: In the instant case, assessee received a gift of Rs. 73 lakhs from his maternal aunt. AO added the same in assessee’s income on the ground that assessee failed to show any occasion on which gift was received. It was concluded that when the donor herself had given a confirmation letter clearly stating therein that she had transferred the amount of Rs. 73,00,000 to the account of assessee and further declaring that she gave the said gift out of her natural love and affection towards her nephew, AO ought not to have entertained further doubts. The donor being no other than assessee’s own maternal aunt, was a ‘relative’ as defined under the Explanation to section 56(2)(v) and hence, it was not permissible for AO to judge the conduct of the donor.
FULL TEXT OF THE HIGH COURT ORDER / JUDGEMENT
As the parties to these appeals are common and the subject matter is connected in both the cases, though not identical, we have heard both these appeals together and decided to dispose of the same by this common judgment.
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