2008 (5) TMI 670

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.... Department and it relates to the asst. yr. 1992-93. The assessee died on 29th July, 2000 and assessment has been made in the name of the legal heir of the deceased. The question that falls for consideration is whether the amount received is 'income'. The Commissioner of Income-tax (Appeals) [for short 'CIT(A)'] held that the amount could at best be in the nature of a gift or donat....

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....ipt, it is open to the ITO to infer that the receipt is taxable. 4. The judgment in A. Govindarajulu Mudaliar (supra) was considered and explained in the later judgment in the case of Parimisetti Seetharamamma vs. CIT (1965) 57 ITR 532(SC) : "The observation relied upon does not lay down a proposition that it may be inferred that a receipt is taxable as income because the assessee fail....

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....nt was reopened and the amount was added as income of the assessee. Therefore, the ratio of the decision in A. Govindarajulu Mudaliar (supra) is not applicable but the ratio of Parimisetti Seetharamamma (supra) is applicable in the present case. At the relevant time the assessee was not holding any public post. It is also on record that he did not do any favour or help to Mr. Jain at any time, whe....