| Question And Answer | |
|---|---|
| Subject: | Property received on inheritance |
| Category: | Income-Tax |
| Querist: | Manali |
| Answered by: | Advocate Shashi Ashok Bekal |
| Tags: | inheritance, Property |
| Date: | October 28, 2022 |
Assessee is an individual and is an illegitimate child. Assessee received certain movable and immovable properties after the death of his father, who dies with out will. AO has given the Show cause as to why these amounts is not taxable under Income Tax?
Whether the SCN is legally valid?
Whether the amount received by assessee is taxable because assessee is illegitimate child?
Is there any judicial decision to support assessee, about non taxability of amount received by assessee.
The term relative, inter alia includes any lineal ascendant/descendant. The assessee is a lineal descendant of his father, thus a relative for the purpose of section 56 of the Income-tax Act, 1961(Act).
Further, the property received can also be said to be an inheritance or in contemplation of death.
Therefore, the said properties cannot be taxed under section 56 of the Act.