The Delhi High Court has issued a notice to UP Chief Minister Mayawati on a petition by the Central Government challenging Income Tax Appellate Tribunal's decision that gifts given to the Bahujan Samaj Party leader by her supporters, out of love and affection, were not taxable.
Don't you think that the Income Tax Appellate Tribunal (ITAT) to have "accepted" the plea of Ms Mayawati -- that immovable property worth Rs 62.72 lakh and cash payments of Rs two lakhs were the gifts given by her supporters were not taxable -- could open a Pandora's Box of precedents as every corrupt politician would hereafter resort to the same tactics and evade taxes ?
The income tax act [Section 10(39)] clearly states that amounts received by way of gift, etc., from relatives upto Rs 50,000/- only will be exempted.
This dalit dowager has no relatives, only "her supporters" who have out of love and affection (sic) made contributions of cash and property, therefore such contributions can not be validated as tax-free.
TAILPIECE
Next time round, according to me, the only option open to the "spinster" would be to announce her marriage and then collect gifts, etc., both cash and property, have her accountants prepare a video taped list in public.
It would be worth mentioning that the Income Tax Act does not specify any restriction on the number of marriages so that would be a added advantagous "loophole" for Ms Mayawati.
