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TMI Blog2024 (5) TMI 1435X X X X Extracts X X X X X X X X Extracts X X X X ..... r gift received by the assessee. Considering the facts put forward by Ld. DR we dismiss the first ground of the assessee. Addition u/s 56(2)(x) - addition of stamp duty value of the said property to the assessee s income of the Act stating that the property is not received from the relative as defined and that the gift deed does not specify that it is a family arrangement - In present case, the transfer by way of gift is a part of family settlement through which individual shares were determined out of the property which they were already owning. It is not a case that the property was received from a third party where the assessee was having no interest at all. As noted the contents of affidavits filed by husband of the assessee, Shri Mahes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Act is not sustainable. Appeal of assessee partly allowed. - Ms. Suchitra Kamble, Judicial Member And Shri Makarand V. Mahadeokar, Accountnat Member For the Assessee : Shri Sakar Sharma, AR For the Revenue : Ms. Neeju Gupta, Sr.DR ORDER PER MAKARAND V. MAHADEOKAR, ACCOUNTANT MEMBER This appeal is filed by the assessee against the order of the Commissioner of Income Tax (Appeals) National Faceless Appeal Centre(NFAC) [hereinafter referred as CIT(A) ], dated 01.08.2023, for the Assessment Year 2020-21, wherein the CIT(A) confirmed the addition made by the Assessing Officer (hereinafter referred as AO ) as per the order passed under section 143(3) of the Income Tax Act, 1961 (hereinafter referred as the Act . 2. Assessee has filed an a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... income under section 56(2)(x) of the Act stating that the property is not received from the relative as defined and that the gift deed does not specify that it is a family arrangement. 4. The assessee contended that the family arrangement is not a transfer within the meaning of section 56(2)(x) of the Act and should not be subject to tax. 4.1. The CIT(A) confirmed the addition made by the AO upholding the view taken by the AO. Ground no. 1 5. Ground No.1 is challenging the validity of the assessment made by AO on the issues other than the issues for which notice u/s 143(2) was issued under CASS for limited scrutiny. The counsel for the assessee stated that the notice u/s 143(2) was issued to verify the investment in immovable property but ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce all parties to settlement are not holding a status of agriculturist, non-agricultural land was used for family settlement and bring equality. He further stated that post settlement by way of gifts, the share of families is kept equal. 9. To support the claim of family settlement the assessee submitted an application of additional evidence by way of affidavits of parties to family settlement. 10. Ld. DR, on the other hand, supported the orders of the AO and CIT(A) and argued that the provisions of section 56(2)(x) are clear and unambiguous, and any receipt of property without adequate consideration should be taxed as income. She also objected to admission of additional evidence. In the interest of justice such additional evidence is admi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 16. We have noted the contents of affidavits filed by husband of the assessee, Shri Mahesh Bhagwandas Parwani, stating that the gift was made by his aunt as per his request as a part of family settlement. We have also noted the contents of other affidavits filed by the parties to family settlement confirming the fact that the gift was a part of family settlement. The details of gift made by Bhojraj Parwani Group to the families of other two brothers as a part of family arrangement to arrive at equality also supports the plea of the assessee that the property is received under family settlement. 17. Hon ble Supreme Court in Kale others Vs. Deputy Director of Consolidation, 1976 AIR 807 has explained the concept of family arrangements and th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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