Case Law Details
Govind Kumar Khemka Vs ACIT (ITAT Delhi)
Facts-
The assessee has acquired the bungalow for INR NIL due to relinquishment of rights in the said property by his three brothers. The assessee has sanctioned a bank loan of INR 15 Crores and disbursement was made by bank of INR 12 Crores (INR 4 Crores each of three brothers).
Accordingly, it is alleged that brothers were paid a sum against relinquishment of their rights in the property. Once the payment is made for such relinquishment, it can no more be said that such transfer was out of love and affection. As per AO, the provisions of section 56(2)(vii)(b) gets attracted.
Assessee submitted that there was a settlement deed and the subject land was received by the assessee as a result of the Family Settlement, hence nothing was chargeable to tax. Brothers fall in the definition of ‘Relatives’ as per section 56(2) therefore said provisions are not applicable to the case.
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