Section 56(2)(viia) prevents laundering of unaccounted income under the garb of gifts

Vora Financial Services P. Ltd Vs. ACIT (ITAT Mumbai)

The provisions of section 56(2) (vii) were introduced as a counter evasion mechanism to prevent laundering of unaccounted income under the garb of gifts_‘ particularly after abolition of the Gift Tax Act. The provisions were intended to extend the tax net to such transactions in kind.

Please become a Premium member. If you are already a Premium member, login here to access the full content.