A gift-even between spouses-must be backed by clear evidence of actual transfer, source of funds, and donor’s capacity
Shilpa Shetty Kundra (ITA No.996/M/2025)
Facts:
The assessee had credited a sum of ₹12.54 crore as a gift received from her husband. In response to queries, the assessee submitted the following:
1. Copy of a gift deed executed between husband and wife
2. PAN and ITR acknowledgement of the donor (husband)
3. Basic details establishing identity and relationship
Legal Issue:
1. Now following legal issue arises:
Whether a gift received from spouse, though exempt under Section 56, can still be taxed under Section 68 where the assessee fails to establish:
Genuineness of the transaction
Creditworthiness of the donor
2. Whether, in the absence of a clearly identifiable transaction trail, a gift—though legally permissible and documented—can be treated as non-genuine for the purposes of Section 68
ITAT Mumbai held in the above case as follows:
1. How the gifted amount has actually been transferred has not been specified. The assessee failed to co-relate the transacted amount with the appropriate evidence. She failed to establish the source for gifting such huge amount.
2. A gift must be proved as a real transaction, not merely documented. Hence, the assessee has not discharged her prima facie onus under Section 68 completely.
3. This matter requires clarifications and factual verifications and therefore remanded for decision afresh.
The copy of the order is as under:
