Case Law Details
Gaurav Agarwal Vs DCIT (ITAT Lucknow)
From the examination of documents found during search and seizure operation u/s. 132 of the Act the Assessing Officer observed that assessee had received cash gifts of Rs.5,38,000/- in the name of his minor son. The Assessing Officer issued show cause notice to explain the cash gift received of Rs.5,38,000/- by minor son on the occasion his birthday. In the reply, the assessee submitted that part of cash gift received was spent in organizing the get together by family members and remaining amount was within the limit of provisions of Section 56 of the Act. The Assessing Officer held that the cash gift received by minor son falls in the ambit of Section 56(1)(vii) of the Act and thus added the same to the income of the assessee. The ld. AR further submitted that before the ld. CIT(A), a specific ground was taken that the amount of Rs.5,38,000/- falls in the previous year 2014-15 relevant to the AY 2015-16 but the ld. CIT(A) instead of deleting the addition held that since the diary was seized in F.Y. 2016-17 relevant to the AY 2017-18 and, therefore he sustained the addition.
Admittedly by both the parties, the gift was received in the previous year 2014-15 which falls in AY 2015-16 and the present case pertains to AY 2017-18, therefore, in this year the gift received in AY 2015-16 cannot be taxed, therefore, the grounds taken by the assessee are accepted and the appeal filed by the assessee is allowed.
FULL TEXT OF THE ORDER OF ITAT LUCKNOW
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