ITAT Deletes Addition on Account of Cash Gifts Received from Mother through Gift Deed in Absence of Contrary Material

The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has deleted the addition on account of cash gifts received from mother through gift deed as no contrary material was found.

The Assessing Officer made an addition on account of the cash deposits over a period of 14 days from 18.04.2016 to 18.11.2016 upon the assessee Sharon Agarwal.

Before the Assessing Officer, it was submitted that the amount had been received as a gift from the mother aged 70 years of the assessee and was out of self-accumulations.

However he was allowed only 50% of the Gift in the hand of the assessee which was gifted jointly to the assessee and her spouse through the Gift-Deed executed by the mother of the assessee, who was a retired school teacher by her profession.

During the proceedings before the Commissioner of Income Tax Appeals (CIT(A)), the assessee had also submitted a copy of the gift deed.

Pradeep Kumar Gupta, appeared on behalf of the assessee and Om Parkash appeared on behalf of the revenue.

A Single Bench of B. R. R. Kumar, (Accountant Member) observed that the gift deed had not been disputed by the revenue. The fact of acceptance of the gift had also not been controverted by the (CIT(A)). In the absence of any contrary material by the revenue, the Bench allowed the appeal filed by the assessee and deleted the addition made by the Assessing Officer.

To Read the full text of the Order CLICK HERE

Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates