Painting received from artist as a gift taxable, Income Tax

[Vikas Aggarwal]

Dear Sir,

Please guide me in the following the issues:-

One proprietor running Art Gallery (in the business of Sale of Paintings) received Paintings from so many artist free of cost (in the normal course of business & sold out in domestic market) before 1st october, 2009 , can the said painting taxable or not.

Can it is taxable under section 28 of the income tax act (treat this as benefit arising in the course of business).

Can the said gift treated as gift & exempt u/s 56(2) of the income tax act, 1961.

 Regards,

CA Vikas Aggarwal.

Posts / Replies

[MARIAPPAN GOVINDARAJAN]

Whether you have got clarified in the above issue? If not please inform.