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Case Law Details

Case Name : Chandrakant H. Shah Vs. ITO (ITAT Mumbai)
Related Assessment Year : 2005- 2006
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In a first-of-its-kind judgement, the ITAT Mumbai recently ruled that a recipient of an interest-free loan from a non-relative is not liable to pay tax. The judgement will come as a major relief for people who borrow money from friends and colleagues and latter grapple with notices from tax authorities.

Section 56 (2)(v) of the Income Tax Act provides for taxing any sum of money in excess of Rs 25,000 received without consideration by an individual or a Hindu Undivided Family (HUF) from any source other

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5 Comments

  1. Bino George says:

    How I can show a loan taken from my friend in my return? Is it taxable for me? I took 75,000/- from my friend through bank account & will return next year? Is this necessery to show in my income tax return?

  2. Sunil says:

    Are there any references to HC or Supreme Court after this decision of ITAT? Are there any retrospective ammendments to nullify the effects of this judgement.

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