| COURT: | ITAT Mumbai |
| CORAM: | R. C. Sharma (AM), Sanjay Garg (JM) |
| SECTION(S): | 115JB, 2(22)(e), 45, 56 |
| GENRE: | Domestic Tax |
| CATCH WORDS: | Book Profits, companies, deemed dividend, deemed income, gift |
| COUNSEL: | F. V. Irani |
| DATE: | March 11, 2015 (Date of pronouncement) |
| DATE: | March 23, 2015 (Date of publication) |
| AY: | 2009-10 |
| FILE: | Click here to view full post with file download link |
| CITATION: | |
| Companies, if authorized by the MoA & AoA, are competent to make and receive gifts. Natural love and affection is a not necessary requirement for a gift. The gift is neither taxable as income s. 56 (pre-amendment) nor as capital gain nor as income u/s.2(22)(e) nor u/s.115JB | |
Three elements are essential in determining whether or not a gift has been made, a) delivery. b) donative intent,’ and c) acceptance by the donee. Companies are competent to make and receive gifts and natural love and affection are not necessary requirement. Only requirement for company is to make gifts as per respective memorandum and article of association, which authorize the company for the same
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