INDIRA UPPAL Vs. UNION OF INDIA

JUDGEMENT

(1.) Present writ petition has been filed seeking a direction that a 'relative' under Sec. 2(g) of the Maintenance and Welfare of Parents and Senior Citizens Act, 2007 ['The Senior Citizens Act'] be treated at par with 'relative' under Sec. 2(41) and Sec. 56 of the Income Tax Act, 1961 ['the IT Act'] for grant of exemption from income tax on gifts received. Petitioner also challenges the provisos and explanation in Sec. 56 of the IT Act granting exemption to the relatives while excluding relatives as defined under Sec. 2(g) of the Senior Citizens Act. SUBMISSIONS ON BEHALF OF THE PETITIONER

(2.) Learned counsel for the petitioner states that Sec. 2(g) of the Senior Citizens Act defines the term 'relative' as 'any legal heir of the childless senior citizen who is not a minor and is in possession of or would inherit his property after his death'. Consequently, he submits that Sec. 2(g) of the Senior Citizens Act considers non-blood related persons to be relatives equivalent to children in case of childless senior citizens. He points out that Sec. 2(41) of the IT Act defines 'relative' as 'the husband, wife, brother or sister or any lineal ascendant or descendant of that individual' and thus does not include the individuals who are defined as 'relatives' in the Senior Citizens Act. He submits that Sec. 56 of the IT Act which provides for exemption of tax on gifts received from relatives, in explanation to Provisos of Ss. 56(2)(vii)(e) and 56(2)(x)(b) of the IT Act, does not include those persons in the definition of relative as provided under Sec. 2(g) of the Senior Citizens Act thereby creating an anomaly.

(3.) Learned counsel for the petitioner states that the petitioner, who is a person with 100% disability, gifted 10% of 9A/50, WEA, Karol Bagh, New Delhi vide gift deed dtd. 1/5/2012 and her share of basement at 20, Todarmal Road, New Delhi valued at about Rs.63,32,040.00 vide a registered gift deed dtd. 15/6/2021 to her nephew Naresh i.e. her 'relative' in accordance with Sec. 2(g) of the Senior Citizens Act. He states that the petitioner's last registered will dtd. 17/5/2015, registered on 19/5/2015 is also in favour of her 'relative' Naresh. He states that in case the gift executed by the Petitioner in favour of Naresh is not exempt, neither the Petitioner nor Naresh has any money to pay the Income Tax on the Gift.