HC rejects IT dept appeal, puts gifts for Maya out of tax net

New Delhi, Aug 3 (PTI) In a big relief to north Indian
state Uttar Pradesh Chief Minister Mayawati, the Delhi High
Court Wednesday dismissed the Centre's appeal challenging a
2007 order of the Income Tax tribunal that her birthday gifts
from supporters were exempted from taxation under the IT Act.
A bench of justices A K Sikri and Suresh Kait dismissed
the appeal saying "the assessee (Mayawati) has fully
discharged her legal obligations by disclosing the identity of
all her donors."
"Further, donors have proved their geniuness and capacity
to make gifts," the bench said adding "there is no evidence on
record to prove that the assessee has favoured the donors in
any manner whatsoever by acquiring the gifts in question."
"In the light of above facts and circumstances, we are of
the considered view that no substantial question of law arises
from the instant appeal," said the bench.
"Therefore, we confirm the judgment passed by the ITAT
and dismissed the instant appeal of the Revenue (Department)
with no order as to cost," it added.
Dismissing the appeal, the bench said, "All the
formalities, as per law, (have been) have been met by the
assessee and donors as well. All donors have admitted that
they are great admirers of the assessee as she is working for
the upliftment of poor people."