2003 (3) TMI 82

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....annot be construed as consideration received by the assessee for the professional service rendered by him and accordingly, in excluding these gifts from the total income of the assessee?" For the assessment year 1986-87 another question has been referred and that is, "Whether, on the facts and in the circumstances of the case, the Tribunal was right in law and had material in holding that out of the total consideration of Rs. 1,45,000 towards lease consideration received by the assessee only a sum of Rs. 29,000 is to be assessed for the assessment year 1986-87?" The assessee was a film actor as also a film distributor. During these years he had entered into an agreement with producers of films and had received remuneration for acti....

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....ld that the entire amount received by the assessee should be treated as income during the year of receipt though termed as deposit in the agreement. The Commissioner on appeal having upheld the assessment, though he reduced the amount to some extent, on further appeal to the Tribunal by the assessee, the Tribunal accepted the assessee's case and held that the amount gifted to the children by the producers are not to be treated as the assessee's income and that only the amount of annual rental should be taken as the income of that year. Learned counsel for the Revenue submitted that the Tribunal has erred in taking the view that it did. It was not disputed, as indeed it cannot be, that the burden of showing that a receipt by an assesse....

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....ments." The burden, therefore, is all the more on the Revenue to show that the gifts received by the children of, the assessee in fact constituted income of the assessee. The only material on which the Assessing Officer relied was the fact that the children had received such gifts in earlier years also from producers. That fact by itself without anything more cannot be regarded as sufficient to hold that a part of the remuneration payable to the assessee was shown as gifts made to the children. The documentary evidence before the Assessing Officer did not lend any support to the inference that he had drawn from the factum of gifts being made in the years in which the assessee had agreed to act in the movies produced by the donors. The....