Income Tax - Highlights / Catch Notes

The ITAT Ahmedabad addressed the validity of an assessment by ...

Property received under family arrangement is not taxable u/s 56(2)(x). Family settlements are valid even without written agreements.

Case Laws Income Tax

May 31, 2024

The ITAT Ahmedabad addressed the validity of an assessment by the AO on issues beyond those covered by a notice u/s 143(2) issued under CASS for limited scrutiny, specifically regarding immovable property under a family arrangement. The Tribunal dismissed the first ground of the assessee, noting that the notice was issued for verifying the purchase of the property in question. Regarding the addition u/s 56(2)(x) of the Act, the Tribunal found that the property was received as part of a family settlement, supported by affidavits and the concept of family arrangements as explained by the Hon'ble Supreme Court. The Tribunal held that the addition made by the AO u/s 56(2)(x) was not sustainable, partially allowing the assessee's appeal. The CIT(A) failed to appreciate the nature of the family arrangement and relevant legal precedents.

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The ITAT Ahmedabad addressed the validity of an assessment by ...

Property received under family arrangement is not taxable u/s 56(2)(x). Family settlements are valid even without written agreements.

Case Laws Income Tax

May 31, 2024

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