Income Tax department doubts Rs 10 lakh gift - brother gets tax notice for cash received from sisters; how he appealed & won the case

Gifts received from relatives and friends can sometimes land you in the income tax net. One such case was of a Mr. Maheshwari from Agra, who had to prove the genuineness of Rs 10 lakh received as cash from his sisters. According to an ET report, a businessman from Agra, Mr. Maheshwari, said he received Rs 2.74 crore (2,74,33,250) as a gift from his Delhi-based sister, along with Rs 6.25 lakh from another sister. Both sisters were married, and he utilised these funds in his business ventures. He subsequently filed his income tax return (ITR) for AY 2016-17, declaring an income of Rs 10 lakh (10,80,770). His ITR faced scrutiny after receiving a notice under Section 143(2) on September 19, 2017. The income tax assessing officer (AO) documented in the assessment order that Mr. Maheshwar