It was the case of the assessee that out of his natural love and affection the donor has gifted amount to the assessee from his income\/capital. The gifts were not liable to income tax in his hands under\u00a0Income Tax Act\u00a0as they were ‘capital receipts’.\u00a0S. 56(2)(vi)\u00a0also exclude gifts from individuals from certain specified relatives including ‘brother-in-law’ from the purview of taxation. Since the donor resides in Mumbai, it was not possible for him to come down to Baroda before the AO within such short notice. Although It was categorically mentioned in the said reply that the donor was a regular tax payer and is regularly assessed to tax for these years, the AO added Rs.5,00,00,000\/-in the hands of the assessee. The Learned CIT(A) deleted the addition.\u00a0 The Department contested that, the assessee is not a blood relative of Mr. N. It was submitted by the assessee that the assessee is an adopted child under the Hindu Law, mainly Hindu Adoption and\u00a0Maintenance Act, 1956 the assessee is having same status as of the own child of a spouse in this case. Tribunal held that as the details of the donor starting from PAN number, capital gain statement, bank statement and others is annexed to the paper book, which was duly placed before the authorities below. It appears that when Shri NS not brought to the Learned AO by the assessee no further enquiry was conducted by him, no record against the assessee was also brought. Apart from that, the creditworthiness and\/or genuineness of the transaction though doubted by the Learned AO, the same has not been proved by any cogent document in favour of the revenue. Further that, whether the gift so received by the assessee from his brother-in-law is exempted from tax under\u00a0S.\u00a0 56\u00a0of the Act has been considered on a wrong notion. Instead of relative as provided by the statute, “blood relative”. Hence, the Revenue’s appeal is dismissed. (AY. 2008-09, 2009-10)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 56 : Income from other sources\u2013Definition of relative\u2013Includes Adopted child \u2013 \u201cblood relative\u201d is not mandatory. [S. 56(2)(vi)] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","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":""},"categories":[1],"tags":[],"class_list":["post-10332","post","type-post","status-publish","format-standard","hentry","category-digest"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-2GE","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/10332","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=10332"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/10332\/revisions"}],"predecessor-version":[{"id":10333,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/10332\/revisions\/10333"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=10332"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=10332"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=10332"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}