Kushal Tandon: Actor will get ITAT assist over Rs 30 lakh current from dad

Kushal Tandon: Actor gets ITAT relief over Rs 30 lakh gift from dad

MUMBAI: The Mumbai bench of the Earnings Tax Appellate Tribunal (ITAT) has held {{{{that a}}}} current of Rs 30 lakh obtained by Bollywood actor Kushal Tandon from his father merely should not be bogus and cannot be dealt with as unexplained income.
This was undoubtedly one among many disputed tax parts for the financial 12 months 2013-14 for which the actor had filed an attraction with the ITAT. If the tribunal had upheld the current as an unexplained income (technically typically referred to as an ‘unexplained cash credit score rating ranking rating’), the actor would have wished to pay tax on it at a steep value of 83.25%.
Presents obtained from certain kinfolk (equal to mom and father) are exempt from income tax (I-T) beneath Half 56 of the I-T Act. Nonetheless, tax officers generally tend to strive gadgets by a microscopic lens to make it doable for no foul play is anxious and unaccounted money merely should not be being confirmed as a gift. If the recipient is unable to substantiate the current, it is dealt with as an ‘unexplained cash credit score rating ranking rating’, which is taxed at a extreme value of 60% plus 25% surcharge and along with a 6% penalty. The last word phrase tax value is 83.25% roughly.
On this case, Tandon was requested to supply documentary proof to help the current transaction. His father’s I-T return for the 12 months by which the current was made confirmed an income of Rs 4.12 lakh solely. On this basis, the I-T officer held this current to be an ‘unexplained cash credit score rating ranking rating’ and sought to tax it accordingly contained within the actor’s arms.
Tandon submitted to the ITAT that the then restricted earnings of the actor weren’t ample to help him meet his funds. Thus, his father had come to the rescue of his solely son and had gifted this amount out of his earlier monetary financial monetary financial savings. His father, Virendra Tandon, was an frequently I-T payer and had disclosed the current transaction in his financial statements. A gift deed had moreover been duly submitted to the tax authorities.
Nonetheless, the ITAT acknowledged that the I-T division had did not take into cognisance that the daddy had gifted the sum out of his earlier gathered monetary financial monetary financial savings. In its order, the ITAT talked about, “We concur with the view taken by the I-T officer that the income confirmed contained within the tax return of Virendra Tandon was not substantial. Nonetheless, a material indisputable fact that had been overpassed by the lower tax authorities is that the actor’s father had not at all acknowledged that he had gifted the amount in question out of his income for the 12 months into consideration, nonetheless had in unequivocal phrases acknowledged that the equal was given by him out of his earlier gathered monetary financial monetary financial savings.” The I-T division did not affirm whether or not or not or not or not the gathered monetary financial monetary financial savings had been generated by the years from his income on which income tax had been paid or had been from any secret gathered funds. As an alternative, the I-T officer rushed by the analysis, added the ITAT order. Primarily based fully on your complete factor of the knowledge launched to it, the ITAT bench, comprising accountant member S Rifaur Rahman and judicial member Ravish Sood, talked regarding the addition of Rs 30 lakh as unexplained cash credit score rating ranking rating was devoid of any income.



Current hyperlink

Leave a Reply

Your email address will not be published. Required fields are marked *