Case Law Details
Jyoti Rakesh Kapoor Vs. ITO (ITAT Mumbai)
We find merits in the arguments of the assessee for the reason that the assessee has gifted her 50% share in the property in favour of her brother in law in pursuance of family arrangement between the family members for acquiring separate property for each family member. The said transactions cannot be considered as transfer within the definition of section 2(47) of the Income Tax Act, 1961. Although the assessee has received cash gift of Rs.68,50,000/- from the person who received gift from the assessee, such an arrangement is as per the family settlement between the members. Therefore, the AO was erred in bringing the above two gift transactions within the purview of definition of transfer as defined under section 2(47) of the Income Tax Act, 1961.
FULL TEXT OF THE ITAT JUDGMENT
This appeal filed by the assessee is directed against the order of the Ld. CIT(A)-57, Mumbai dated 14.12.17 and it pertains to assessment year 2013-14. The assessee has raised the following grounds of appeal:
“1. The learned CIT (Appeal) has erred in law and on the facts of the case in sustaining the order of the assessing officer holding that gift made by the assessee towards relinquishing 50% interest in the flat No. 52 at Ajanta Apartment, Colaba, Mumbai is a transfer within the meaning of section 2(47) of the Income Tax Act.
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