M. VELUSWAMY Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) This Tax Case (Appeal) is filed at the instance of the assessee as against the order of the Income Tax Appellate Tribunal raising the following substantial questions of law:

(2.) The assessment in this case relates to the assessment year 2008-09. The appellant/assessee, during the birthday celebration on attaining the age of 60, received gifts from his son, wife, mother and daughter amounting to Rs.13,17,300/-. All the amounts were received through cheques in the name of the individual and the same had been subsequently deposited in the HUF account. The cheques, which were drawn in the name of the individual became blended with the property of HUF by way of journal entry.

(3.) The Assessing Officer doubted the genuineness of the transaction, however, stated that the gifts received by the individual were duly accounted in HUF account and therefore added in the amount in the name of the HUF. The Assessing Officer invoked Explanation to Proviso to Section 56(2)(vi) of the Income Tax Act and held that the HUF would not come within the definition of relative. Aggrieved by the said order of the Assessing Officer, the assessee filed an appeal before the Commissioner of Income Tax (Appeals) specifically raising grounds, viz., 2 to 5 and contending that the transaction in this case will be covered by Section 64(2) and not Section 56 of the Income Tax Act. The Commissioner of Income Tax (Appeals), however, did not consider the plea of the assessee and dismissed the appeal, which forced the appellant to prefer further appeal before the Tribunal.