Gift from HUF to Member Requires Verification Before Taxation: ITAT Rajkot

Kunal Rajendra Mashru Vs ACIT (ITAT Rajkot) The appeal pertains to Assessment Year 2017-18, challenging the order of the Commissioner of Income Tax (Appeals) [CIT(A)], Chennai, which upheld an addition of Rs. 10,00,000 under section 56(2)(vii) of the Income Tax Act, 1961 (“the Act”). The addition arose from a gift received by the assessee from Rajendra H. Mashru (HUF), of which the assessee was a member. The assessee argued that the addition was unjustified, as a Hindu Undivided Family (HUF) comprises a group of relatives and gifts received from such a group should fall under the definitio...