Case Law Details
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 provisions of s. 562,)(v). There is also force in the submissions of the counsel for the assessee that prior to introduction of S. 56(2)(vii) by the Finance Act, 2009, w.e.f. 1st Oct., 2009, gifts in kind were outside the purview of s. 56(2)(v) or (vi). The expression used in s. 56(2)(v) and (vi) is “where any sum of money” exceeding Rs. 25,000 is received by an individual from any person. Considering the fact that in the present case, what was given without consideration was only IMD certificates, provisions of s. 56(2)(v) or (vi) could not have been nivoked by the AO. Even on this ground, order of the CIT(A) deserves to be sustained—H.H. Sri Rama. Verma vs. CIT (1991) 95 CTR (SC) 26: (1991) 187 ITR 308 (SC) applied.”
INCOME TAX APPELLATE TRIBUNAL, MUMBAI
ITA No.6399/Mum/2010
Assessment Year: 2006-07
ACIT, Cent. Circle-44
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