2026 (2) TMI 314

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....he assessment order dated 09.02.2024 u/s 147 r.w.s 144 of the Income Tax Act, 1961 (hereinafter referred to as 'the Act') passed by the Assessment Unit, Income Tax Department, for AY: 2018-19. 2. The assessee is an individual and filed return declaring income of Rs, 3,40,540/- and subsequently case was reopened on the ground that assessee has received an immovable property by way of gifts deed amounting to Rs, 33,43,440/- it did not fall in the definition of specified relatives as defined in Section 56(2) of the Income Tax Act, 1961. Assessee filed return and declared an amount of Rs, 303,43,440/- income from other sources later on during reassessment proceeding assessee revised computation claiming that the said property were received b....

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....al has purchased the property with contribution coming up from late Shri Sahdev Prasad Aggarwal who was real brother of Shri A.D. Aggarwal and father in law of assessee. Thus in a way pleading it to be a joint hindu family property. 4. The assessee had succeeded before the Ld. CIT(A) as ld. CIT(A) considered the family settlement/family arrangement to be a genuine transaction and observed that AO has not made any adverse remark about the same thereby the allegation by way of registered gift deed was not 'transfer' as defined u/s 2(47) of the Act. 5. The thrust of contention of ld. DR was on the assertion that story of family settlement is a concocted story and subsequently created to add validity to the registered gift deed which was ....

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....red view that proviso to sub-clause (b) of clause (vii) of Subsection (2) of section 56 of the Act provide that clause (vii) will not apply in the case of property is received from any relative and the definition of relative in Explanation (e)(ii) mentions that in case of Hindu Undivided Family any member thereof. Meaning there by that if the property is received without consideration from member of HUF, same shall not be considered deemed income. 9. Now, in the case of assessee the manner in which the facts giving rise to gift are narrated vary apparently, the family settlement was between members of the family, who constituted HUF, by due to reason of manner of acquisition of property and respective antecedent rights and interest in th....