Dhruti Jaysukhbhai Ranpariya Vs ITO (ITAT Rajkot)
Husband-to-Wife Property Gift Fully Exempt: ITAT Rajkot Deletes ₹1.78 Cr Addition; Immovable Property Not ‘Money’: s.69A Inapplicable to Gifted Assets
Rajkot Bench of the ITAT, vide order dated 31.12.2025 in Dhruti Jaysukhbhai Ranpariya v. ITO (ITA No. 536/RJT/2025, AY 2018-19), allowed the assessee’s appeal and deleted the addition of ₹1,78,17,600, holding that immovable properties received by the assessee from her husband by way of gift were fully exempt from tax.
The assessee, an individual opting for presumptive taxation u/s 44ADA, had disclosed receipt of multiple immovable properties from her husband during FY 2017-18 and claimed the same as exempt gifts. The AO treated the value of gifted properties as unexplained money u/s 69A on the ground that genuineness, love and affection, and creditworthiness of the donor were not proved. The NFAC/CIT(A) confirmed the addition, observing absence of “natural love and affection”.
The Tribunal, after detailed examination of the registered sale deeds in the husband’s name, powers of attorney, registered gift deeds, encumbrance certificates, marriage certificate, Aadhaar records, and capital accounts, held that the donor-donee relationship as husband and wife was conclusively established and the husband’s financial capacity to gift the properties was fully demonstrated. The gifts were executed through registered instruments and duly reflected in the books of both parties.
Interpreting Section 56(2)(x), the ITAT reiterated that gifts received from a “relative”, including spouse, are specifically excluded from taxation, irrespective of value. The Tribunal also held that Section 69A is wholly inapplicable to immovable property, as it applies only to money, bullion, jewellery or similar movable valuables, and in any case, the properties were duly recorded in the books.
Relying on statutory provisions and the Finance Minister’s speech clarifying legislative intent to tax only gifts from unrelated persons, the ITAT concluded that the addition was unsustainable in law and on facts. Accordingly, the addition of ₹1.78 crore was deleted in full and the appeal was allowed.
FULL TEXT OF THE ORDER OF ITAT RAJKOT
Captioned appeal filed by the assessee, pertaining to Assessment Year 2018-19, is directed against the order passed under section 250 of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) by National Faceless Appeal Centre (NFAC), Delhi/Commissioner of Income-tax (Appeals) [in short, “CIT(A)”] dated 01.08.2025 which in turn arises out of an assessment order passed by Assessing Officer dated 26.04.2021.
