Post proving the source and genuineness of receipt of gift from brother addition is unsustainable

ITO Vs Dr. Satish Natwarlal Shah (ITAT Ahmedabad) ITAT Ahmedabad held that once the source and genuineness of receipt of shares from brother in USA is proved, addition of the same is unsustainable in terms of explanation 2 to section 56(2)(v) of the Income Tax Act. Also, there is no need for any ‘occasion’ for receipt of such gift from the brother. Facts- The assessee has received a gift of Rs. 3,12,24,009/- wherein Rs. 2,61,82,207/- is by way of various company shares. The assessee also gifted Rs. 1,06,65,848/- to his relatives. The assessee explained that he received the gifts in the for...