Tuesday, June 16, 2015

No tax or MAT on Donee-Co. in respect of gift received from another concern; ITAT affirms gifting powers of a co.

The ITAT Mumbai Bench held that where assesses received certain amount from 'R' Ltd. on account of dividend receivable by four concerns against their shareholding in 'R' Ltd., since there was no dispute about genuineness of transaction because receipt of amount was duly authorized by respective Memorandum and Articles of Association of assesses and donor companies, it was to be regarded as gift; it is neither taxable as Income from Other Sources under section 56 nor as Capital Gain nor as income under section 2(22)(e) nor under section 115JB.

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