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TMI Blog2016 (4) TMI 669X X X X Extracts X X X X X X X X Extracts X X X X ..... ry same assessment year, we are inclined to follow the decision of the Coordinate Bench of this Tribunal and direct the A.O. to treat the gift from Biravelli Bhasker (HUF) as a gift under section 56(2) of the I.T. Act. Accordingly, this ground of appeal is treated as allowed in favour of assessee - ITA.No.897/Hyd/2012 - - - Dated:- 24-2-2016 - SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI S. RIFAUR RAHMAN, ACCOUNTANT MEMBER For The Assessee : Mr. P. Raviseshagiri Rao For The Revenue : Mr. B. Kurmi Naidu ORDER PER SMT. P. MADHAVI DEVI, J.M. This appeal is filed by the assessee against the order of the Ld. CIT(A) in confirming the additions made by the A.O. The two additions challenged by the assessee are (1) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the investment was accumulated sales and current year s income. The A.O. however, was not satisfied with this explanation and held that the assessee did not show any substantial withdrawals from her capital account to make a fresh investment. He therefore, disallowed the same and brought it to tax. Aggrieved, assessee preferred an appeal before the Ld. CIT(A) who confirmed the addition made by the A.O. as far as ₹ 1 lakh is concerned and failed to deal with ground No.2. Aggrieved, the assessee is in appeal before us raising grounds of appeal against both the additions. 3. At the time of hearing, the Ld. Counsel for the assessee, submitted that the issue whether a HUF is a relative under section 56(2) of the I.T. Act has been co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eld as under : 11.1. An HUF is a person within the meaning of s. 2(31) of the IT Act and is a distinctively assessable unit under the Act. The IT Act does not define expression HUF . It is well defined area under the Hindu law which has received recognition throughout. Therefore, the expression HUF must be construed in the sense in which it is understood under the Hindu law as has been in the case of Surjit Lal Chhabda vs. CIT 1976 CTR (SC) 140 : (1975) 101 ITR 776 (SC). Actually an HUF constitutes all persons lineally descended from a common ancestor and includes their mothers, wives or widows and unmarried daughters. All these persons fall in the definition of relative as provided in Explanation to cl. (vi) of s. 56(2) of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . CIT (supra). 11.2. Further, from a plain reading of s. 56(2)(vi) along with the Explanation to that section and on understanding the intention of the legislature from the section, we find that a gift received from relative , irrespective of whether it is from an individual relative or from a group of relatives is exempt from tax under the provisions of s. 56(2)(vi) of the Act as a group of relatives also falls within the Explanation to s. 56(2)(vi) of the Act. It is not expressly defined in the Explanation that the word relative represents a single person. And it is not always necessary that singular remains singular. Sometimes a singular can mean more than one, as in the case before us. In the case before us the assessee receive ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... received by the assessee from the HUF should be interpreted to mean that the gift was received from the relatives therefore the same is not taxable under s. 56(2)(vi) of the Act, we hold accordingly. 4. In view of the above, respectfully following the same, we hold that HUF can be treated as a relative under the provisions of section 56(2) so as to exclude the amount received from HUF by the assessee-individual. Accordingly, we set aside the order of the Ld. CIT(A) and A.O. on this issue and direct the A.O. to treat the amount of ₹ 2,25,000 received from the HUF as an amount exempted under section 56(2). The addition is accordingly deleted. 6. Since the facts of the case before us are similar as in the assessee s hus ..... X X X X Extracts X X X X X X X X Extracts X X X X
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