Property Received Under Family Settlement Not Taxable u/s 56(2) — Gift Deed Only a Formal Consequence

ITO Vs Ratna Aggarwal (ITAT Delhi)

The ITAT Delhi dismissed the Revenue’s appeal and upheld the CIT(A)’s deletion of addition, holding that immovable property received pursuant to a genuine family settlement is not taxable u/s 56(2), even if the transfer is documented through a registered gift deed.

The Tribunal noted that although the assessee had initially, under wrong advice, offered the value of the property as income from o

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