Free Flat Receipt Not Taxable in AY 2007-08: Section 56(2)(v) Covered Only Money

Sheela Daniel Vs ITO (ITAT Mumbai) The Income Tax Appellate Tribunal (ITAT), Mumbai Bench, in the case of Sheela Daniel vs. ITO, has ruled that the receipt of a free flat during Assessment Year (AY) 2007-08 is not taxable as income from other sources. The Tribunal held that the relevant section of the Income-tax Act, 1961—specifically Section 56(2)(v), as it stood during that period—was limited in its scope to cover only the receipt of a “sum of money” and did not extend to the receipt of immovable property without consideration. Background of the Case The case involved an appe...