2013 (10) TMI 4 - HC - Income Tax

Application of section 56(2)(vi)(b) - taxability of gifts received on occasion of the marriage his daughter Held that - The expression individual appearing in proviso (b) of Section 56(2)(vi) of the Act, is preceded by the words marriage and therefore, relates to the marriage of the individual concerned, i.e., the assessee and not to the marriage of any other person related to him in whatsoever degree, whether as his daughter or son. The expression marriage of the individual is unambiguous in its intent and does not admit to an interpretation, that it would include an amount received on the marriage of a daughter. If legislature had intended that gifts received on the occasion of marriage of the assessee s children should be exempted, nothing prevented Legislature from adding the words or his children , after the words marriage of the individual - Addition made to the appellant s income on account of gifts received on the occasion of his daughter s marriage is affirmed Decided against the Assessee.

Summary

Issues:
Delay in re-filing the appeal, Interpretation of Section 56(2)(vi) of the Income Tax Act regarding gifts received on the occasion of marriage of an individual or their children.

Delay in re-filing the appeal:
The application sought to condone a delay of 26 days in re-filing the appeal, which was allowed by the court after considering the reasons presented in the application and the arguments made.

Interpretation of Section 56(2)(vi) of the Income Tax Act:
The appellant contested an order by the Income Tax Appellate Tribunal regarding the treatment of gifts received on the occasion of his daughter's marriage under Section 56(2)(vi) of the Income Tax Act. The appellant argued that the word "individual" in the proviso should include gifts received on the marriage of an assessee's children. However, the respondent maintained that the exemption clause only applies to the marriage of an individual and not their children. The court analyzed the proviso (b) to Section 56(2)(vi) of the Act, which exempts gifts received on the occasion of the marriage of the individual. The court held that the expression "individual" in the proviso refers to the marriage of the assessee and not the marriage of any other person related to them, such as their daughter or son. The court emphasized that the legislative intent was clear and unambiguous, stating that if the legislature had intended to exempt gifts received on the marriage of the assessee's children, it would have explicitly mentioned so in the provision. Consequently, the court affirmed the addition made to the appellant's income on account of gifts received at his daughter's marriage and dismissed the appeal.

In conclusion, the court upheld the decision of the Income Tax Appellate Tribunal, ruling that gifts received on the occasion of the appellant's daughter's marriage are not exempted under Section 56(2)(vi) of the Income Tax Act, as the provision specifically refers to gifts received on the marriage of the individual, i.e., the assessee, and not their children.