Section 56 not Applicable to Gift in Kind Received prior to 1st Oct., 2009

The gift in question was complete prior to 19th July, 2002. The gift deed dt. 19th July, 2002 records the fact that the gift was already completed prior to that date by delivery of IMD bonds y the donor to the donee. As rightly held by the CIT(A), gift would be complete in the financial year 2002-03 within the meaning of ss. 122 and 123 of the Transfer of Property Act, 1882, Provisions of s. 56(2)(v) applied only to gift n or after 1st Sept, 2004. The fact that maturity proceeds were received by the assessee during the previous year relevant to asst. yr. 2006- 07 cannot be the basis to apply p...