- Chennai ITAT in P Srinivasan vs ITO[1] - Receipt of Gift from Uncle’s son and daughter-in-law to the assessee can be said to be constructive gift from Uncle and accordingly not taxable in light of Section 56(2)(vii) in the hands of assessee:
An interesting issue has come up for consideration before Chennai ITAT. The assessee has received Rs 50 lakhs from his uncle (father’s brother) as gift. However, the said amount was received from the bank account of uncle’s son and daughter-in-law who are non-resident Indians. The AO has considered the amounts received from uncle’s son and daughter-in-law and held that the same as taxable since the later are not considered as ‘relative’ as per the definition provided in Section 56(2)(vii). The Commissioner (Appeals) has also upheld the order of AO.
