Thursday, August 4, 2011

Delhi High Court

The Delhi High Court on Wednesday dismissed an appeal filed by Income Tax Department challenging a tax tribunal order exempting from tax gifts received by Uttar Pradesh Chief Minister Mayawati during the assessment year 2003-04.
A division bench of justices A. K. Sikri and Suresh Kait upheld the order passed by Income Tax Appellate Tribunal (ITAT) that gifts received by the BSP chief from party supporters were not taxable under the Income Tax Act.
ITAT had accepted Ms. Mayawati’s claim that immovable property worth Rs 62.72 lakh and cash payments of Rs. two lakh were the gifts given by her supporters out of love and affection.
The I-T department in its appeal had held her claim as unacceptable and contended that cash and property given to Ms. Mayawati should be included in her annual income tax return.