Shilpa Shetty Kundra Vs DCIT (ITAT Mumbai)
12.54 crores Gift to Shilpa Shetty Kundra from Spouse u/s 68: Addition Set Aside & Matter Remanded for Fresh Verification
In this case, the assessee received a gift of Rs 12.54 Cr from her husband and claimed it as genuine. However, the AO treated the same as unexplained credit u/s 68 due to failure to establish genuineness, creditworthiness & source, and taxed it u/s 115BBE. The CIT(A) confirmed the addition.
Before ITAT, the assessee argued that identity (PAN), relationship (spouse), gift deed & ITR of donor were furnished, thereby discharging the primary onus. It was also contended that the AO failed to make proper enquiry (no action u/s 131/133(6)).
However, the Tribunal noted serious deficiencies:
- No bank statements showing actual movement of funds
- No clarity on mode of transfer even in gift deed / affidavits
- No correlation between bank entries & gift amount
- Donor’s income not commensurate with huge gift
- Source of funds (foreign remittance / investments) not properly established
- Multiple inconsistencies in Schedule FA / AL disclosures
Thus, the assessee failed to fully discharge onus u/s 68. At the same time, considering that some documents were filed and facts required deeper verification, ITAT held that the issue was not properly examined.
Accordingly, the matter was remanded to AO for de novo adjudication, with direction to the assessee to furnish complete evidence.
FULL TEXT OF THE ORDER OF ITAT MUMBAI
