Vandana Sharma Vs PCIT (Delhi High Court)
The Delhi High Court considered an appeal under Section 260A of the Income Tax Act, 1961 challenging the ITAT Delhi Bench ‘SMC’ order dated 28.01.2026. The Tribunal had partly allowed the assessee’s appeal and restricted the addition to Rs.19,25,000, granting lump-sum relief of Rs.8,00,000.
The dispute arose from a sale deed dated 03.04.2017 concerning a house property belonging to the assessee’s father-in-law, Mr. Pitamber Sharma. According to the assessee, the property came to her family as part of a family settlement through the three sons of Mr. Pitamber Sharma. The sale deed was registered in the assessee’s favour and recorded cash consideration of Rs.27,25,000, although the assessee claimed that no consideration was actually paid and that the amount was reflected because the registering authority required stamp duty based on the circle rate.
The transaction was not reported to the Income Tax Department, and the assessee did not file a return in relation to it. After the transaction came to the Assessing Officer’s notice, proceedings under Section 148 were initiated. The assessee responded that the transaction was a family settlement rather than a sale and that the consideration was mentioned only for stamp duty valuation. The Assessing Officer did not accept the explanation and passed an assessment order under Section 147 read with Section 144B on 29.03.2023, assessing the assessee’s income at Rs.28,46,120.
