9911796707
|
Home
Issues involved: Application u/s 256(2) of the Income-tax Act, 1961 seeking mandamus to Tribunal for reference of question regarding classification of sum received as gift or professional receipt.
Summary: The assessee, an astrologer, musician, and palmist, received a sum from foreign nationals, claimed as gifts out of personal regard, not professional receipts. The Assessing Officer treated the amounts as professional fees, upheld by the Commissioner of Income-tax. However, the Income-tax Appellate Tribunal found no evidence of professional services rendered, concluding the amounts were gifts, not taxable as professional receipts. The Tribunal cited Supreme Court and Madras High Court decisions emphasizing the need to establish a nexus between professional services and receipts for taxation. The Tribunal found the Department unjustified in taxing the sums as professional receipts without such nexus, based on the donors' affidavits and lack of contrary evidence. In light of relevant case law, the Tribunal's factual finding that the receipts were gifts, not professional income, was upheld. The Tribunal correctly rejected the Revenue's application under section 256(1) of the Act, as no question of law arose from its order. The application u/s 256(2) seeking mandamus for reference was consequently rejected, with no costs awarded.
|
