Mayawati: Gifts cannot be Taxed Delhi HC


Gifts given to Mayawati can’t be taxed: Delhi HC

Abhinav Garg,

      NEW DELHI: Gifts that included immovable property and cash were given to Uttar Pradesh chief minister Mayawati out of “love” by her admirers as she was “working for the uplift of poor people”, the Delhi high court on Wednesday held, while faulting income tax authorities for assessing these as taxable.

     A division bench of Justice A K Sikri and Suresh Kait dismissed an appeal filed by the income tax department challenging a tax tribunal order that exempted from tax the gifts received by the Bahujan Samaj Party chief during the assessment year 2003-04.

     “All the formalities, as per law, (have been) met by the assessee (Mayawati) and the donors as well. All donors have admitted that they are great admirers of the assessee (Mayawati ) since she is working for the uplift of poor people,” the judgment authored by Justice Kait said.

       In the process, the high court upheld the ruling of the Income Tax Appellate Tribunal (ITAT) and said, “The assessee (Mayawati) has fully discharged her legal obligations by disclosing the identity of all her donors. Further, donors have proved their genuineness and capacity to make gifts. There is no evidence on record to prove that the assessee favoured the donors in any manner whatsoever by acquiring the gifts in question.”

      ITAT had ruled that the gifts received by chief minister Mayawati from her party supporters were not taxable under the Income Tax Act and accepted her claim that immovable property worth Rs 62.72 lakh and cash payments of Rs 2 lakh were gifts given by her supporters out of love and affection.

However, the central government had doubted this claim and questioned the “genuineness” of these gifts before the Delhi high court. The government estimated these gifts to be worth over Rs 13 crore. It had argued that inquiries into the financial capabilities of her donors revealed that these people or families had an annual income of “Rs 2 or 3 lakh” and couldn’t afford the items being cited by Uttar Pradesh chief minister Mayawati as gifts.

         “Gifts shown are bogus. We have doubts about the genuineness of the gifts valued at over Rs 13 crore and the creditworthiness of their donors,” the Centre had said.

Delhi high court says ‘gift of love’ to Mayawati not taxable

PTI Aug 3, 2011, 07.14pm IST

     NEW DELHI: In a relief to Uttar Pradesh chief minister Mayawati, the Delhi high court on Wednesday dismissed an appeal filed by I-T department challenging a tax tribunal order exempting from tax gifts received by her during the assessment year 2003-04.

    A division bench of justices AK Sikri and Suresh Kait upheld the order passed by Income Tax Appellate Tribunal (ITAT) that gifts received by the BSP supremo from party supporters were not taxable under the Income Tax Act.

        ITAT had accepted Mayawati’s claim that immovable property worth Rs 62.72 lakh and cash payments of Rs 2 lakh were gifts given by her supporters out of love and affection.