Prema G. Sanghvi v. ITO

Decision:    In assessee’s favour.

Income from other sources– Receipt of alimony from ex-husband

Facts:

Assessee received an amount of Rs. 73 lakhs from her ex-husband. The said amount was claimed to have been received as alimony on divorce with her husband and the same was claimed as exempt. AO, however, held that the said amount was taxable as income from other sources.

Held:

Payment of alimony amount by ex-husband to his wife was nothing more than a gift and was exempt under the proviso to section 56(2)(vi).