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TMI Blog2022 (11) TMI 665X X X X Extracts X X X X X X X X Extracts X X X X ..... ncome of the assessee is that the amount has been transferred from bank account of uncle s son and his daughter-in-law who are residing abroad as non-resident. Under such circumstances, the gift so received by the assessee could not be considered as income of the assessee. The son and daughter-in-law are not alien to the uncle but very close relatives and it could be construed that the gift was given by the son and daughter-in-law first to uncle and thereafter, it was remitted by uncle to the assessee. The gifts so received could be construed as constructive gift from uncle. On the given facts and circumstances, the addition so made could not be considered to be income of the assessee and the same is liable to be deleted. - ITA No.709/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s subjected to scrutiny of Ld. AO. 3.2 The donor confirmed that the gift was out of love and affection for the welfare of brother s son and his family. As per donor s instructions, the gift was transferred through bank by his .son and daughter-in-law residing at Singapore as non-resident (NRI). 3.3 However, the evidence of relationship, copy of return of income of donor was not produced and accordingly, Ld. AO opined that the capacity of the donor and the genuineness of the transactions could not be furnished. The Ld. AO also held that his uncle was nowhere involved in the transaction. Finally, invoking the provisions of Sec.56(2)(vii), Ld. AO held that though gift from close relative is not taxable but the recipient of the gift has t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the sums of money received from other person as receipt of gift from the said relative. Therefore, the sum was not received from the relative within the meaning of Sec.56(2)(vii) and accordingly, the grounds raised by the assessee were dismissed. Aggrieved, the assessee is in further appeal before us. Our findings and Adjudication 6. It is undisputed position that had the gift been received by the assessee directly from the uncle, the same would not fall within the mischief of Sec.56(2)(vii) since the term relative include brother or sister of either of parents of the assessee. The gift received from such relatives is considered exempt for recipient for the simple reason that such gifts could normally be received by a person ..... X X X X Extracts X X X X X X X X Extracts X X X X
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