Monday, 17 September 2012

S. 68: Burden on assessee to show that donors have financial capacity to give gifts


U/s 68, the burden is on the assessees to show that the amount received by purported gift(s) from the donors is a “gift” in the legal sense. The assessee has to show whether the donors have the financial capacity to make the gift(s) in favour of the assessees. The fact that the two are assessed to tax at Singapore does not answer the question. The assessees has to lead evidence to show that the alleged donors had adequate funds in their respective accounts to make the purported gift(s) in accordance with CIT vs. P. Mohanakala 2007 (6) SCC 21

 CIT vs. P.R. Ganapathy (Supreme Court)

No comments:

Interest on Foreign Currency Loan & Corresponding Forex Loss for Strategic Share Acquisition Held Deductible as Revenue Expenditure

  The tax treatment of interest on funds borrowed to acquire shares hinges on a single, crucial distinction: the   purpose   behind the acqu...