Syed Faraz Shere Vs ITO (ITAT Delhi)
Gift by Mother, Not Transfer by Son: ITAT Gives Assessee Final Chance to Prove Reality
Assessee challenged reassessment order passed u/s 147 r.w.s 144, wherein AO treated transfer of agricultural land valued at ₹86,07,707 as assessee’s taxable capital-gain transaction. According to AO & CIT(A), assessee failed to furnish sale deed / supporting evidence & therefore addition of ₹60,25,395 was sustained.
Before ITAT, assessee explained that the land was ancestral property owned by his mother, who had gifted 0.2810 hectare to her children vide registered Gift Deed dated 11.05.2010. Assessee merely executed documents on behalf of his mother under Power of Attorney, as she was aged & unwell. He asserted that he did not sell or gift any property, & that Gift Deed establishes that the transfer was from mother to siblings, not from the assessee. He admitted inability earlier to furnish complete records due to misplaced documents but now possesses the Gift Deed & is ready to submit all supporting evidence.
Revenue pointed out that assessee indeed failed to furnish bank statements, purchase/sale deeds, or gift documents either before AO or CIT(A). Assessee’s counsel conceded this factual position but sought one final opportunity to produce the full Gift Deed & all supporting materials before CIT(A).
