2016 (4) TMI 669

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.... of which the assessee was the member; and (2) Rs. 50,000 which was made by the A.O. without properly interpreting the accounts of the assessee under section 143(3) on account of unexplained investment made by the assessee in M/s. Mahadevi Industries. 2. Brief facts of the case are that the assessee, an individual, derived income from shares and interest from firms and other sources. She filed her return of income for the A.Y. 2008-09 on 25.03.2009 admitting total income of Rs. 1,49,830. During the assessment proceedings under section 143(3) of the I.T. Act, the A.O. noticed that the assessee has received an amount of Rs. 1 lakh as cash gift from Mr. Biravelli Bhaskar (HUF). The A.O. noticed that as per the provisions of section....

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....or the very same A.Y. 2008-09 and that the Tribunal has held that HUF can be treated as a relative. He has filed a copy of the order before us. 3.1. As regards the other issue i.e., investment of Rs. 50,000 and the sources therefor, is concerned, he has submitted that though the assessee had raised the ground of appeal and give an explanation about the source of investment, the Ld. CIT(A) has not dealt with the same. 4. The Ld. D.R. however, relied upon the orders of the authorities below. 5. Having regard to the rival contentions and the material available on record, we find that the SMC Bench of this Tribunal in the case of assessee's husband in ITA.No.398/Hyd/2015 vide order dated 17.06.2015 has dealt with the definition of the ....

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....e. Rather, an HUF is 'a group of relatives'. Now having found that an HUF is 'a group of relatives', the question now arises as to whether would only the gift given by the individual relative from the HUF be exempt from taxation and would, if a gift collectively given by the 'group of relatives' from the HUF not exempt from taxation. To better appreciate and understand the situation, it would be appropriate to illustrate an example, thus-an employee amongst the staff members of an office retires and in token of their affection and affinity towards him, the secretary of the staff club on behalf of the members of the club presents the retiring employee with a gift; could that gift presented by the secretary of the staff club on behalf of the ....

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....oses, finally at the end a "HUF" is made up of "a group of relatives". Thus, in our opinion, a singular word/words could be read as plural also, according to the circumstance/situation. To quote an example, the phrase "a lot". Here, the phrase "a lot" remains as such, i.e. plural, in all circumstances and situations, where in the case of "one of the friends" or "one of the relatives", the phrase remains singular only as the phrase states so that one amongst the relatives and at no stretch of imagination it could mean as plural whereas in the phrase "a lot" the words "a" and "lot" are inseparable and if split apart both give distinctive numbers, i.e. "a" singular and "lot" plural and whereas when read together, it can only read as plural in ....