2018 (10) TMI 1582

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....nds of the assessee without appreciating that the expression "sum of money" as used in Section 56(2) of the Act would also include IMD deposits as they could be converted into cash on redemption. 2) On the facts and circumstances of the case and in law, whether the Ld.CIT(A) was justified in holding that the Indian Millennium Deposit (IMD) bonds would not be taxed in the hands of the assessee without appreciating that he expression "sum of money as used in Section 56(2) of the Act need not be only cash in hand but also those instruments which could easily be converted into cash on redemption. 3) On the facts and circumstances of the case and in law, whether the Ld.CIT(A) was justified in relying on the order of Hon'ble ITAT in the c....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....bonds. The learned CIT(A), after considering all the facts and report of the AO and also the decision of the ITAT and various other judgements, deleted the addition of principal amount of Rs. 1,12,52,500/- and interest of Rs. 15,72,151/-. Now the Revenue is in appeal before us. 4. At the outset the learned A.R. of the assessee pointed out that the issue stands squarely covered in favour of the assessee by the several decisions of the Coordinate Benches holding that the gift of Indian Millennium Deposit (IMD( bonds is valid gift and therefore the same should be decided by following these decisions. The assessee relied on the following decisions:- i) ACIT vs. Anju Agarwal, ITA No. 4945/Mum/2008 dated 14.10.2009 ii) ACIT vs. Harresh N. Me....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....e gift for premature encashment. However, non resident only will be entitled to transfer the said IMD certificates. In the case of Shri Sarad Kumar Babulal Jain vs. Income Tax Officer the Coordinate Bench has held as under: - "7. In the instant case, the assessee has received "IMD Bonds". There cannot be any doubt that "IMD bonds" falls in the category of "Securities". Hence the receipt of securities without adequate consideration, i.e. Gifts in kind, is subjected to tax, only if it is received only on or after 1.10.2009. In the instant case, the impugned IMD amount has been received by the assessee prior to 1.10.2009. Hence, the provisions of section 56(2)(v), which was invoked by Ld. CIT is not applicable to the impugned transaction. ....