Law:

Section:

Section 4 of the Income-tax Act, 1961 - Individual - Assessable as - Assessment years 1985-86 and 1986-87 - Assessee, i.e. a film actor, during relevant assessment years had entered into an agreement with producers of films and had received remuneration for acting in those films which was duly accounted for by him - Assessee's children had received gifts from those producers on which gift-tax was paid - Assessing Officer took view that as there was a pattern of assessee's children receiving gifts from producers from year 1980-81 in whose production assessee had agreed to act, amount gifted to children must be regarded as additional remuneration paid to assessee - On appeal, Commissioner (Appeals) upheld assessment - On further appeal, Tribunal however, reversed orders passed by authorities below - On reference, it was found from records that producers/donors had not claimed deduction on gifts made to assessee's children as business expenditure but suffered gift-tax on such gifts - Moreover, income-tax authorities had not allowed gifted amounts as cost of production in hands of producers - Whether in view of circumstances, gifts made by producers to assessee's children could not be construed as consideration received by assessee for professional services rendered by him - Held, yes FACTS The assessee was a film actor and also a film distributor. During the relevant assessment years he had entered into an agreement with producers of films and had received remuneration for acting in those films which was duly accounted for by him as also by the producers. The assessee's children had received gifts from those producers on which gift-tax was paid and his children had also filed the returns. The Assessing Officer took the view that as there was a patterns of the assessee's children receiving gifts from the producers from the year 1980-81 onwards in whose production the assessee had agreed to act, the amount gifted to the children must be regarded as additional remuneration paid to the assessee. On appeal, Commissioner (Appeals) upheld the assessment, though he reduced the amount to some extent. On further appeal to the Tribunal, it was held that the amount gifted to…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492