Abul Wais Abdus Salam Vs ITO (ITAT Mumbai)
In the case of Abul Wais Abdus Salam Vs ITO, the Mumbai ITAT examined the taxability of a Rs. 20,00,000 gift received by the appellant from his non-resident brother. The appellant had challenged the addition of this amount to his income, arguing that it was a gift from a relative and thus exempt under section 56(2)(x) of the Income-tax Act, 1961. The initial rectification order by the Central Processing Centre and the subsequent appeal before the National Faceless Appeal Centre had both upheld the addition of the gift to the appellant’s income, along with a double addition of Rs. 40,500. The ITAT found that the appellant had sufficiently demonstrated the identity, creditworthiness, and genuineness of the gift and the donor. It was determined that the gift from the non-resident brother was indeed exempt from taxation. The Tribunal directed the Assessing Officer to delete the Rs. 20,00,000 addition from the income and also allowed the rectification for the double taxation of Rs. 40,500. Consequently, the appeal was partly allowed, and the additions were removed from the appellant’s total income.
FULL TEXT OF THE ORDER OF ITAT MUMBAI
1. ITA 515/Mum/2024 is filed by Abul Wais Abdus Salam for A.Y. 2021-22 against the appellate order passed by the National Faceless Appeal Centre, Delhi (‘ld. CIT(A)’) dated 17.11.2024 wherein the appeal filed by the assessee against the rectification order passed u/s 154 of the Income-tax Act, 1961 (‘the Act’) on 29.07.2022 by the Central Procession Centre (‘the ld. Assessing Officer’) was dismissed.
