| Question And Answer | |
|---|---|
| Subject: | Section 56(2)(10) cancellation of gift |
| Category: | Income-Tax |
| Querist: | subodh vora |
| Answered by: | Research Team |
| Tags: | Cancellation of gift |
| Date: | October 22, 2022 |
A Individual recived a Immovable property namely flat by Registred Gift deed in July 2021. The stamp duty value of the flat is Rs 80 lakhs. At the time of filing Income tax return for the Assessment year 2022-23 the consultant pointed out that since this is not a gift from relative , the amout of Rs 80 Lakhs will be taxable under section 56(2)(10). Now the said Individual has entered into cancellation deed and has cancelled the said gift from its inception.
Please confirm if there would be any liability now on account of Section 56(2)(10)
In Kolli Rajesh Chowdary vs. State of Andhra Pradesh and Ors. AIR 2019ANDHRA PRADESH40 the Court held that cancellation of registered gift deed requires mutual consent of both the parties and their participation . Gift deed cancellation not valid . On the facts of the query if the cancellation is valid in law there would not be liability under section 56(2))(10) of the Act.