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TMI Blog2024 (12) TMI 909X X X X Extracts X X X X X X X X Extracts X X X X ..... a gift is wholly exempt u/s. 56(2)(X) of the Act. The aforesaid issue is accordingly determined in negative against the revenue and in favour of the assessee. AO is directed to delete the said addition - Assessee s appeal is allowed. - Shri Br Baskaran, Accountant Member And Shri Sunil Kumar Singh, Judicial Member For the Assessee : Shri. Rohit Vijay Vargia For the Revenue : Ms. Rajeshwari Menon, Sr. DR ORDER PER SUNIL KUMAR SINGH (J.M): 1. This appeal has been preferred against the impugned order dated 16.11.2023 passed in Appeal no. NFAC/2017-18/10040568 by the Ld. Commissioner of Income tax(Appeals)/ National Faceless Appeal Centre (NFAC) [hereinafter referred to as the CIT(A) ] u/s. 250 of the Income-Tax Act, 1961 [hereinafter referr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ainst the impugned order on the ground that the learned CIT(A) has erred in upholding the assessment order, confirming the addition of Rs. 5,03,18,734/-, being difference between the fair market value of equity shares gifted from relative and the cost of acquisition by previous owner/donor by invoking section 149(1)(ii) of the Act. 4. Perused the records and heard learned representative for the appellant assessee and learned DR for the respondent revenue department. 5. The small issue involved under appeal is as to whether the difference in the cost of shares donated by the assessee s relative to assessee and that recorded at fair market value by the assessee, be treated as unexplained credit u/s 68 of the Act? 6. Learned representative for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the decision of the ITAT Jaipur bench in Utsav Cold Storage (P.) Ltd. V. ITO Ward 3(2) Jaipur [2016] 70 taxmann.com 13 (Jaipur-Trib.). These cases relate to the capital gain on the profit or gain that arise on the transfer of the capital asset. In the instant case, there is no transfer of aforesaid gifted shares after the assessee (donee) received these shares in gift from the relative (brother of assessee s spouse). The facts of the cases referred and relied by the Ld. CIT(A) are easily distinguishable and not applicable to the facts of the present case. 10. We notice that the assessee received the gift of shares from the brother of her spouse, who is a relative in terms of explanation (a) attached to the proviso to clause (xiii) r/w expl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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