Tax on Gift from Step-brother/sister under Section 56: ITAT Mumbai Ruling

Rabin Arup Mukerjea Vs ITO (ITAT Mumbai) Assessee received a property as a gift from his stepsister by way of registered gift deed. According to the AO, the donor & donee were not relatives as per the meaning contained in Section 56(2). AO held that he had reason to believe that receipt of property without consideration is chargeable to tax on the basis of the Hon’ble Family Court’s finding that the donor & donee were born out of different wedlocks & they cannot be treated as biological brother & sister. As per section 56(2), “relative” definition covers only brothe...