The Tax Publishers2019 TaxPub(DT) 0388 (Del-Trib)

INCOME TAX ACT, 1961

Section 56(2)(vii)(a)

Where assessee claimed amount in question to have been received as a nominee of one 'T' after his death being a childhood friend but did not produce any correspondence or supportive documents. AO was justified in taxing the amount received as income without consideration under section 56(2)(vii)(a).

Income from other sources - Income without consideration - Amount claimed to be received as nominee of deceased friend - No supportive correspondence or documents

AO noticed that amount of GBP 1,58,000 was credited in assessee's account pursuant to cheque issued by Milton Keynes Council on behalf of late Teck Chand Bhardwaj. AO taxed the same as income without consideration under section 56(2)(vii)(a). Assessee contended that since assessee had received amount in question as a nominee of Tek Chand Bhardwaj after his death being a childhood friend, the same was not liable to be taxed. Assessee contended that since assessee had received amount in question as a nominee of Tek Chand Bhardwaj after his death being a childhood friend, the same was not liable to be taxed.Held: Assessee had not produced any correspondence by way of text messages or letters between him and Teck Chand Bhardwaj to prove his childhood friendship, rather based his entire case on alleged nomination letter being vague and ambiguous document not inspiring any confidence to believe it. Entire exercise as to transfer of amount in question by Milton Keynes Council to the assessee was based upon bald document not supported with any evidence either by the Milton Keynes Council or by the assessee to prove his close relations with Tek Chand Bhardwaj. So, in much circumstances, had rightly treated the amount in question as income of assessee without consideration.

REFERRED :

FAVOUR : Against the assessee.

A.Y. : 2009-10


INCOME TAX ACT, 1961

Section 271(1)(c)

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