AO treated the sale of painting which was received by father Late Mr M.F .Husain as business income instead of capital receipts .On appeal the Tribunal held that the painting received by the assessee from his late father as gift is a personal effect and not liable to tax . Amendment by finance Act 2007 w.e.f. 1-04 -2008 is prospective in nature . (ITA. No 4320/Mum/2016 “D” dt/ 11-05-2018)( AY. 2006 -07)
Owais M.Husain v ITO (2018) 194 TTJ 102/ 167 DTR 49( Mum) (Trib)
S. 4 : Charge of income-tax -Personal effects- Sale of painting received by gift from father is held to be capital receipts – Amendment by Finance Act 2007 w.e.f 1-04 -2008 is prospective in nature . [ S.2(14),28(i) ]