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TMI Blog2009 (10) TMI 936X X X X Extracts X X X X X X X X Extracts X X X X ..... er 1st day of September, 2004 without any consideration from a person who was not related to the assessee. (2). On the facts and circumstances of the case and in law, learned CIT(A) was not correct in holding that the year of receipt of money with regard to gift of IMD certificates was the year when the certificates were transferred in the name of the assessee and not the year when the assessee actually received the money on maturity of these certificates. (3) The appellant prays that the order of learned CIT(A) on the above ground be set aside and that of the ITO/AC/DC be restored. 3. The assessee is an individual. The assessee filed return of income for asst. yr. 2006-07 on 29th Dec, 2006 declaring total income of ₹ 2,77,7 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act, 2004, cl. (v) was introduced to s. 56(2) of the Act, w.e.f. 1st April, 2005. Those provisions lay down that where any sum of money exceeding ₹ 25,000 is received by an individual from any person on or after 1st Sept., 2004 but before 1st April, 2006, whole of such sum shall be chargeable to income tax under the head 'Income from other sources'. By Taxation Laws (Amendment) Act, 2006, w.e.f. 1st April, 2007. cl. (vi) to s. 56(2) was introduced, whereby if any sum of money aggregating the value exceeds ₹ 50,000 is received without consideration by an individual in any previous year from any person after 1st April, 2006, whole of the aggregated value of such sum shall be chargeable to income-tax under the head Income ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d was IMD certificate and not any sum of money and therefore above provisions were not applicable. Besides the above, the assessee also pointed out that as per the scheme of IMD bonds, amount comprised in the bonds was free from income-tax, gift tax and wealth tax. 7. On the above submissions, learned CIT(A) held that the gift was complete in financial year 2002 03. Since the gift was received by the assessee much prior to introduction of provisions of s. 56(2)(v), w.e.f. 1st Sept., 2004 or s. 56(2)(vi ), w.e.f. 1st April. 2006. the same cannot be brought to tax. Learned CIT(A) also held that provisions of s. 56(2)(v) could not be applied merely on the basis of receipt of maturity value of IMD by the assessee during the previous year. Le ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 19th July, 2002 records the fact that the gift was already completed prior to that date by delivery of IMD bonds by the donor to the donee. As rightly held by learned CIT(A), gift would be complete in the financial year 2002-03 within the meaning of ss. 122 and 123 of the Transfer of Property Act, 1882. Provisions of s. 56(2) (v) applied only to gift on or after 1st Sept., 2004. The fact that maturity proceeds were received by the assessee during the previous year relevant to asst. yr. 2006-07 cannot be the basis to apply provisions of s. 56(2)(v). 10. We also find force in the submissions of learned counsel for the assessee that prior to introduction of s. 56(2)(iv) by the Finance Act, 2009, w.e.f. 1st Oct., 2009, gifts in kind were out ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by an assessee during the assessment year, the income relates to the amount of money earned or received by an assessee. Therefore for purposes of claiming deduction from income-tax under s. 80G(2)(a), the donation must be a sum of money paid by the assessee. The plain meaning of the words used in the section does not contemplate donations in kind. Donations may be made by supplying goods of various kinds including building, vehicle or any other tangible property but such donations, though convertible in terms of money do not fall within the scope of s. 80G(2)(a) entitling an assessee deduction. Donation of shares of a company does not amount to payment of any sum or amount though the shares, on their sales, may be converted into money. B ..... X X X X Extracts X X X X X X X X Extracts X X X X
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