{"id":3383,"date":"2011-06-29T14:48:45","date_gmt":"2011-06-29T09:18:45","guid":{"rendered":"http:\/\/itatonline.org\/archives\/?p=3383"},"modified":"2011-06-29T14:48:45","modified_gmt":"2011-06-29T09:18:45","slug":"vineetkumar-raghavjibhai-bhalodia-vs-ito-itat-rajkot-huf-is-a-relative-for-gifts-exemption-us-562v-vi-vii","status":"publish","type":"post","link":"https:\/\/itatonline.org\/archives\/vineetkumar-raghavjibhai-bhalodia-vs-ito-itat-rajkot-huf-is-a-relative-for-gifts-exemption-us-562v-vi-vii\/","title":{"rendered":"Vineetkumar Raghavjibhai Bhalodia vs. ITO (ITAT Rajkot)"},"content":{"rendered":"<table width=\"150\" border=\"0\" align=\"right\">\n<tr>\n<td><a href=\"https:\/\/itatonline.org\/archives\/?dl_id=462\" onclick=\"if (event.button==0) \r\n     setTimeout(function () { window.location = 'http:\/\/itatonline.org\/downloads.php?varname=dl_id=462&varname2=bhalodia_HUF_gifts.pdf'; }, 100)\" ><strong>Click here to download the judgement (bhalodia_HUF_gifts.pdf) <\/strong> <\/a><\/p><\/td>\n<\/tr>\n<\/table>\n<p><strong><br \/>\nHUF is a \u201crelative\u201d for gifts exemption u\/s 56(2)(v), (vi) &#038; (vii)<br \/>\n<\/strong><\/p>\n<p>The assessee received a gift of Rs.60 lakhs from his HUF. The AO &#038; CIT(A) held that as <em>HUF was not covered by the definition of \u201crelative\u201d, the gift was chargeable to tax u\/s 56(2)(v)<\/em>. The alternate submission that gift was <em>exempt u\/s 10(2)<\/em> was rejected on the basis that s. 10(2) applied only to amounts received \u201cout of income of the estate\u201d on partial or total partition of the HUF. On appeal by the assessee, HELD allowing the appeal:<\/p>\n<p>(i) S. 56(2)(v) exempts gifts from a \u201crelative\u201d. <strong>Though the definition of the term \u201crelative\u201d does not specifically include a Hindu Undivided Family, a \u2018HUF\u201d constitutes all persons lineally descended from a common ancestor and includes their mothers, wives or widows and unmarried daughters. As all these persons fall in the definition of \u201crelative\u201d, an HUF is \u2018a group of relatives\u2019<\/strong>. As a gift from a \u201crelative\u201d is exempt, a gift from a \u2018group of relatives\u2019 is also exempt since the singular will include the plural;<\/p>\n<p>(ii) The gift was also <strong>exempt u\/s 10(2)<\/strong> because the two conditions required to be satisfied for relief viz (1) that the assessee is a member of the HUF and (2) that he receives the sum out of the income of such HUF (may be of an earlier Year) were satisfied.<\/p>\n<div class=\"journal2\">\nFor more on s. 56(2)(v) see <strong><a href=\"http:\/\/www.itatonline.org\/articles_new\/index.php\/law-on-taxability-of-gifts-a-comprehensive-analysis\/\">Law on Taxability of Gifts: A Comprehensive Analysis<\/a><\/strong>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>S. 56(2)(v) exempts gifts from a \u201crelative\u201d. <strong>Though the definition of the term \u201crelative\u201d does not specifically include a Hindu Undivided Family, a \u2018HUF\u201d constitutes all persons lineally descended from a common ancestor and includes their mothers, wives or widows and unmarried daughters. As all these persons fall in the definition of \u201crelative\u201d, an HUF is \u2018a group of relatives\u2019<\/strong>. As a gift from a \u201crelative\u201d is exempt, a gift from a \u2018group of relatives\u2019 is also exempt since the singular will include the plural<\/p>\n<div class=\"read-more\"><a href=\"https:\/\/itatonline.org\/archives\/vineetkumar-raghavjibhai-bhalodia-vs-ito-itat-rajkot-huf-is-a-relative-for-gifts-exemption-us-562v-vi-vii\/\">Read more &#8250;<\/a><\/div>\n<p><!-- end of .read-more --><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[4,8],"tags":[],"class_list":["post-3383","post","type-post","status-publish","format-standard","hentry","category-all-judgements","category-tribunal"],"acf":[],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/posts\/3383","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/comments?post=3383"}],"version-history":[{"count":0,"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/posts\/3383\/revisions"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/media?parent=3383"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/categories?post=3383"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/tags?post=3383"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}