2023 (5) TMI 480

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.... Act, 1961 (hereinafter referred to as 'the Act') dated 08.12.2019. The assessee has raised the following grounds of appeal:- "1. The Learned AO as well as the Learned CIT(A)/National Faceless Appeal Centre (NFAC) has erred in making addition of Rs.18,00,000/- received as gift from assessee HUF which was exempted u/s 56(2)(VII) of the Act. 2. The Appellant craved leave to add, alter, delete, amend or rescind any of above grounds of appeal as and when necessary with the permission of ITAT." 2. Brief facts of the case are that assessee is an individual filed his income for assessment year 2017-18 on 02.03.2018 declaring total income at Rs.21,35,210/-. During the scrutiny assessment, the Assessing Officer noted that assessee has shown gif....

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....al in Pankil Garg Vs PCIT (2019) 108 taxmann.com 337 (Chand-Trib) and earlier decision of Rajkot Tribunal in Vineet Kumar Raghavjibhai Bhalodia Vs ITO (2011) taxmann.com 384 (Rajkot), wherein the gift received from HUF was treated as exempt. The Ld. AR for the assessee submits that in both the aforesaid decisions, it is categorically held that HUF is an artificial person of family members who falls within the definition of relative as prescribed under sub-clause (e) of clause (vii) of under section 56(2) of the Act. 4. The ld AR for the assessee submits that assessee has received gift from its own HUF, which is also exempt under section 10(2) of Income Tax Act, thus, the assess may be allowed relief on alternative submissions. 5. On the o....

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....d that the property of HUF neither can be said to belong to third party nor can be said to be in 'corporate entity' , rather same is property of the members of the family, because share of each of the individual member in the property or income of HUF is not determine, hence, the family as such, is treated as separate entity for the purpose of taxation. HUF is otherwise not recognise as a separate juristic person distinct from who constitute it. A member of HUF has preexisting right in the family property. 8. I find that the division bench in the above case also considered the provisions of section 10(2) of the Act and noted that any sum received by an individual, as a member of 'HUF', which has been paid out of the income of the f....