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ITA No.21/Del/2025

Ratna Aggarwal (AY: 2018-19)

IN THE INCOME TAX APPELLATE TRIBUNAL

“A” BENCH, DELHI

BEFORE SHRI ANUBHAV SHARMA, JUDICIAL MEMBER &

SHRI MANISH AGARWAL, ACCOUNTANT MEMBER

ITA No.21/Del/2025

(Assessment Year: 2018-19)

Income Tax Officer Vs. Ratna Aggarwal

Room No. 1210, E-2, Krishna Nagar,

Block, Civic Center, New Delhi – 110051

Minto Road,

New Delhi – 110002

(cid:1)थायीलेखासं./जीआइआरसं./PAN/GIR No: AEFPA6066B

Appellant .. Respondent

Appellant by : Sh. Mayank Patawali, Adv.

Sh. Akash Ojha, Adv.

Respondent by : Sh. Krishna Kumar Ramawat, Sr.

DR

Date of Hearing 01.12.2025

Date of Pronouncement 04.02.2026

O R D E R

PER ANUBHAV SHARMA, JM:

This appeal is preferred by the revenue against the order dated

04.11.2024 of the Ld. National Faceless Appeal Centre (NFAC) Delhi

(hereinafter referred as Ld. First Appellate Authority or in short Ld. ‘FAA’)

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ITA No.21/Del/2025

Ratna Aggarwal (AY: 2018-19)

in DIN & Order No: ITBA/NFAC/S/250/2024-25/1070080500(1) arising out

of the assessment order dated 09.02.2024 u/s 147 r.w.s 144 of the Income

Tax Act, 1961 (hereinafter referred to as ‘the Act’) passed by the Assessment

Unit, Income Tax Department, for AY: 2018-19.

2. The assessee is an individual and filed return declaring income of

Rs.3,40,540/- and subsequently case was reopened on the ground that

assessee has received an immovable property by way of gifts deed amounting

to Rs.33,43,440/- it did not fall in the definition of specified relatives as

defined in Section 56(2) of the Income Tax Act, 1961. Assessee filed return

and declared an amount of Rs.303,43,440/- income from other sources later

on during reassessment proceeding assessee revised computation claiming

that the said property were received by her in family settlement and therefore

the value of the property is not taxable, however, AO did not agree and made

addition of the same.

3. The case of the assessee is that immovable property was received by

Shri Rajiv Agarwal by way of registered gift deed executed on 12.06.2017 of

value of Rs.303,43,440/- and the said transaction does not file in the

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ITA No.21/Del/2025

Ratna Aggarwal (AY: 2018-19)

definition of specified relatives in Section 56(2) of the Act and was actually

by way of family settlement it has come in the hands of assessee. The

transaction was carried out between the assessee and her brother in law Mr.

Ravi Agarwal son of late Shri A.D. Agarwal who was real brother of late Shri

Sahdev Prasad (father in law of assessee). Shri A.D. Agarwal in his dying

wish has desired to gift some shares of his property to the family of his

brother late Shri Sahdev Prasad and the same was pursued by his son Dr.

Ravi Agarwal who is reputed doctor and a Non-Resident Indian settled in

USA for last 36 years. Ravi Agarwal in order to own the wish of his father

registered the property M-142, 1^st Floor, Kailash Part II, Delhi in the name of

assessee by way of family settlement. It was claimed by the assessee that

inadvertently while filing return in reopening assessment the value of the

property was shown as income from other sources under wrong advice,

therefore, revised computation was filed. It comes up from the submission

which are made before Ld. CIT(A) that the claim of the assessee was also

that late Shri A.D. Agarwal has purchased the property with contribution

coming up from late Shri Sahdev Prasad Aggarwal who was real brother of

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ITA No.21/Del/2025

Ratna Aggarwal (AY: 2018-19)

Shri A.D. Aggarwal and father in law of assessee. Thus in a way pleading it

to be a joint hindu family property.

4. The assessee had succeeded before the Ld. CIT(A) as ld. CIT(A)

considered the family settlement/family arrangement to be a genuine

transaction and observed that AO has not made any adverse remark about the

same thereby the allegation by way of registered gift deed was not ‘transfer’

as defined u/s 2(47) of the Act.

5. The thrust of contention of ld. DR was on the assertion that story of

family settlement is a concocted story a