Property Received Under Family Settlement Not Taxable u/s 56(2) — Gift Deed Only a Formal Consequence

ITO Vs Ratna Aggarwal (ITAT Delhi) The ITAT Delhi dismissed the Revenue’s appeal and upheld the CIT(A)’s deletion of addition, holding that immovable property received pursuant to a genuine family settlement is not taxable u/s 56(2), even if the transfer is documented through a registered gift deed. The Tribunal noted that although the assessee had initially, under wrong advice, offered the value of the property as income from other sources in the return filed in response to notice u/s 148, she corrected the claim during reassessment proceedings, asserting that the property was received un...