ITAT upholds AO’s Addition of Rs. 9.65 Lakh u/s 56(2)(x) as Gift not Qualifying from a Relative

The Income Tax Appellate Tribunal (ITAT) upheld the Assessing Officer’s (AO) addition of ₹9.65 lakh under Section 56(2)(x) as a gift not qualifying from a relative. The case involved an assessee who had received a gift, which the AO treated as taxable income under Section 56(2)(x). The ITAT found that the gift did not qualify as an exempt gift from a relative under the Income Tax Act. The tribunal ruled that the AO’s addition was justified and upheld the decision. This ruling clarifies the conditions under which gifts are taxable and emphasizes the importance of understanding the tax implications of receiving gifts.