Case Law Details
Cynthia Ramona Chellappa Vs. ITO (ITAT Chennai)
The issue under consideration is whether the amount received through the Will of God-Mother is eligible for exemption u/s 56(2)(vii)?
ITAT states that a perusal of the provisions of Section 56(2)(vii) shows that any amount received by an individual without consideration and the aggregate value exceeds 50,000, the whole of the aggregate value is liable to be treated as income under the head “income from other sources”. The Fourth Proviso thereunder provides for the exemptions. Clause (a) talks of any amount received from a relative, Clause (c) talks of any amount under the Will or by way of inheritance. For the purpose of Clause (a) of the Fourth Proviso, “relative” has been defined in explanation (e) to the Proviso. A Will can be written by anybody. In a Will, anybody can be given a bequeathal. It need not be a relative alone. The fact that the Fourth Proviso refers to relative in Sub-clause (a), and refers to a Will or inheritance in Clause (c) clearly shows that the Will need not be a Will of a relative. Further, a Will is not given any restrictive meaning in the Explanation under the said Proviso either. This being so, ITAT are of the view that the amount received by the assessee as a legacy through the Will of Mrs. Eva Maria Schnelder-Boog of an amount of 50,000 Swiss Francs, under no circumstances, can be brought to tax under the head “income from other sources” as the same is exempted by Clause (c) of the Fourth Proviso to Section 56(2)(vii) of the Income Tax Act, 1961. In the result, the appeal of the assessee is allowed.
FULL TEXT OF THE ITAT JUDGEMENT
This is an appeal filed by the Assessee against the order of the learned Commissioner of Income Tax (Appeals)-15, Chennai in ITA No.384/2016-17/CIT(A)-15 dated 30.05.2019 for the Assessment Year 2014-15.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
