TaxTMI 
TaxTMI 
TaxTMI 
2025 (10) TMI 768
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....hat case, provisions of Section 50C is not applicable, as it is a gift to the relative, which is exempt from tax, and therefore, the addition made of Rs. 11,93,673/- u/s 50C, is against the provisions of the law. 3. The appeal filed by the assessee for assessment year (A.Y.) 2016-17 is barred by limitation by 80 days. The assessee has moved a petition for condonation of delay requesting the Bench to condone the delay. Learned Counsel for the assessee, explained the reasons for delay, stating that order passed by the CIT(A) never reached to the assessee because the online portal displays E-mail Address and Mobile Number which belonged to the "Tax Return Preparer, who did not inform to the assessee. Subsequently, the assessee received physically penalty notice issued u/s 271(1)(c) for A.Y. 2016-17 dated 29.06.2025 wherein it was mentioned "you had preferred appeal which has been disposed of by the 1st appellate authority, i.e. CIT(A)." On perusal of this notice, the assessee immediately approached the consultant. Therefore, in this process, the delay of 80 days has occurred, which may kindly be condoned. 4. Learned DR for the revenue submitted that in the absence of reasonable,....
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....umentary evidences stating that the land was transferred to his sister-inlaw and therefore, the deed was in nature of gift. However, due to mistake by bond writer, it was treated as sale transaction. The assessee can change such transaction by making correction deed. The reply of the assessee during assessment proceeding, is as under: "3. Sold of property is to our family member i.e. to sister in law (my younger brother wife Mrs. Ritaben Kaushikbhai Kubavat) actually such transaction is of in gift nature, by mistake our bond writer treated as sale transaction, we can change such transaction by making correction deed. Considering above it is requested to your sir do not attract provision of section 50 C of the IT Act 1961 and not to add in total income for A.Y.2016-17." 8. However, assessing officer rejected the above contention of the assessee and made addition on account of index cost of acquisition at Rs. 2,95,078/- and an addition of Rs. 11,93,673/-, under section 50-C of the Act. 9. Aggrieved by the order of the assessing officer, the assessee carried the matter in appeal before Ld. CIT(A) who has confirmed the action of the assessing officer. The ld.CIT(A) has j....
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....to him. 12. On the other hand, Ld. DR for the Revenue submitted that the assessee has offered the transaction for tax, suo- motto and moreover, the assessee's case doesn't fall under the provisions of Section 56(2)(vii) of the Act. The Section 56(2)(vii) of the Act is applicable only to the purchaser. Therefore, the assessee's case is not covered under the provisions of Section 56(2)(vii) of the Act. The Ld. DR also submitted that the assessee's case is covered u/s 50C of the Act. The Ld. DR further pointed out that this is not the case of gift, as there is a consideration involved in this transaction, therefore, addition made by the assessing officer may be upheld. 13. I have heard the rival contentions, perused the material on record and duly considered facts of the case in the light of the applicable legal position. In my considered view, it was wholly erroneous on the part of the authorities below to determine the tax, on the gift, from relative of the family. It is a settled Law that, only the real income has to be taxed. It is the duty of the tax authorities to act properly and judiciously. As per CBDDT circular dated 03.11.1955 cited in Choksi vs. CIT (107 ITR 363) and....
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....of Section 56(2), which defines "Relative" as under: "Explanation. For the purposes of this clause, "relative" means- (i) spouse of the individual. (ii) brother or sister of the individual. (iii) brother or sister of the spouse of the individual. (iv) brother or sister of either of the parents of the individual. (v) any lineal ascendant or descendant of the individual. (vi) any lineal ascendant or descendant of the spouse of the individual. (vii) spouse of the person referred to in clauses (ii) to (vi);" 15. At this juncture, it is relevant to refer the provisions of Section 56(2)(x) of the Act, which are as under: "Section 56(2)(x) - where any person receives, in any previous year, from any person or persons on or after the 1st day of April 2017, - (a)any sum of money, without consideration, the aggregate value of which exceeds fifty thousand rupees, the whole of the aggregate value of such sum; (b) any immovable property, - (A) without consideration, the stamp duty value of which exceeds fifty thousand rupees, the stamp duty value of such property. (B) for consi....