Pr. Commissioner Of Income Tax- 11 v. Sh. Satvinder Singh Wadhawan

$~41 IN THE HIGH COURT OF DELHI AT NEW DELHI+ITA 221/2017 PR. COMMISSIONER OF INCOME TAX- 11..... AppellantThrough: Mr. Zoneb Hossain, Adv. versus SH. SATVINDER SINGH WADHAWAN..... RespondentThrough CORAM: HON'BLE MR. JUSTICE S. RAVINDRA BHATHON'BLE MR. JUSTICE NAJMI WAZIRIO R D E R%21.03.2017 The question of law which the Revenue urges in this appealunder Section 260A of the Income Tax Act, 1961 (in short the Act) is,whether the amounts received from third parties by way of loans,could have been treated as income from other sources on account ofSection 56(2)(v)-(vii) of the Act. The CIT(A), whom the assesseeapproached, upon disallowance by the AO of the amounts, found thatthe advances were repaid in a subsequent year.The ITAT tooconfirmed this fact after re-appraisal of all circumstances. This Court is of the opinion that the expression “received”,which is the qualifying phrase for the applicability of Section 56(2) ofthe Act should receive a narrow interpretation rather than a wide oneas is contended by the Revenue. The Act consciously distinguishesbetween “receipts”, “advances” and “loans”.In the circumstances,the “receipt” connotes a more precise meaning that the amount is received by way of a gift by the recipient/ donor, to be appropriatedby her/ him as personal property or an asset. In view of the above discussion, the Court is of the opinion thatno substantial question of law arises.The appeal is, accordingly,dismissed. S. RAVINDRA BHAT, J MARCH 21, 2017/kk NAJMI WAZIRI, J