https://www.taxtmi.com/caselaws?id=780869 ITAT Kolkata allowed the assessee's appeal and deleted the addition made u/s 56(2)(vii) treating the gift as income from other sources. It held that the spouse of the assessee's sister qualifies as a "relative" for purposes of s.56, and sums received from such relative are not taxable, irrespective of whether a formal gift deed exists. The Tribunal noted that the gift was a movable property transferred through normal banking channels from an NRE account, with source duly evidenced by bank statements. It held that neither s.56 nor the (now inoperative) Gift Tax Act requires a gift deed for such exemption, and faulted the AO for focusing on deed validity rather than the explained source. en-us Tue, 04 Nov 2025 00:00:00 +0530 Fri, 13 Mar 2026 15:10:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=780869 ITAT Kolkata allowed the assessee's appeal and deleted the addition made u/s 56(2)(vii) treating the gift as income from other sources. It held that the spouse of the assessee's sister qualifies as a "relative" for purposes of s.56, and sums received from such relative are not taxable, irrespective of whether a formal gift deed exists. The Tribunal noted that the gift was a movable property transferred through normal banking channels from an NRE account, with source duly evidenced by bank statements. It held that neither s.56 nor the (now inoperative) Gift Tax Act requires a gift deed for such exemption, and faulted the AO for focusing on deed validity rather than the explained source. Case-Laws Income Tax Tue, 04 Nov 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=780869