Abhinav Bindra Vs. DCIT (ITAT Delhi)
Shri Abhinav Bindra is the first person in the history of independent India to have won the Olympic Gold Medal. In a country whose population is more than 100 crores, if a sportsman who is not a professional sportsman has won the gold medal for the first time after 60 years of independence of the country and he has been given the awards/rewards/prizes mainly by various Governments, local authorities, trusts and institutions and of course some corporate/individuals, a liberal construction of Circular No. 447 is required. Considering the facts of the case and the nature and spirit of Circular No. 447, we hold that in the case of the assessee, viz., Shri Abhinav Bindra, all the rewards/prizes/gifts received by him are covered by Circular No. 447 dated 22nd January, 1986 and, therefore, should not be treated as income in his hands. Accordingly, the addition of Rs. 63,10,601/- made by the Assessing Officer and the enhancement of Rs. 2,34,00,000/- made by the learned CIT(A) is deleted.
FULL TEXT OF THE ITAT ORDER IS AS FOLLOWS:-
G.D. Agrawal, Vice-President – This appeal by the assessee is directed against the order of learned CIT(A)-I, Dehradun dated 21st February, 2013 for the Assessment Year 2009-10.
2. The assessee has raised the following grounds of appeal:-
“1. That order passed u/s 250(6) of the Income-tax Act, 1961 is against law and facts on the file in as much as the Ld. Commissioner of Income-tax (Appeals) was not justified to uphold the action of the Ld. Assessing Officer in treating a sum of Rs. 63,10,601/- received from various trusts and associations by way of gifts/awards on winning of the Olympic Medal as taxable under the head “Income from other sources” as gifts received under the provisions of section 56(2)(v).
2. That he was further not justified to arbitrarily enhance the assessed income by Rs. 2,34,00,000/- received by the appellant from various Governments without giving any opportunity before taking such an action.
3. That the Ld.CIT(A) gravely erred in not adjudicating on the detailed written submissions made during the course of hearing vide which it was submitted that the entire receipts received by the appellant were in the nature of capital receipts.
4. That principles of natural justice were grossly violated in as much as neither any reasonable opportunity before enhancing the income was given nor the details written submissions made, were considered while adjudicating the appeal.”
3. The facts of the case are that the assessee is a sportsperson viz., shooter of international repute who won medals in various international events including Asian Games, Commonwealth Games, World Championships and also won gold medal in Olympic Games at Beijing in 2008. During the accounting year relevant to the assessment year under consideration, the assessee received awards/prizes/gifts amounting to Rs. 4,81,63,380/- which were divided in four categories as under:—
