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2015 (10) TMI 2120 - AT - Income TaxTaxation on amount received on family settlement - accrual of income - Held that:- Shares of M/s. Sea Princess Hotel and Properties ltd. were transferred lower than the book value and the impugned gift was not genuine is also not substantiated and also not borne out of facts, because unless and until the family members agree by way of family settlement, it cannot go through because there may be possibility of compensating the value in either terms of money or by providing equivalent share in another property but fact remains that the source of the impugned receipt has been duly explained. The family is consisting of businessmen/businesswomen and all the members are aware about the market value of the total property and how to safeguard their interest in a best manner, therefore, there is no question of understatement. Even, if it is presumed that the valuation was understated, it can be of the total property and not of the single property. Still fact remains that the entire property was in existence at the time of partition in which concerned family members were having their interest/shares, therefore, it was clearly a family settlement. Therefore, the family arrangement is not taxable and no addition was warranted on the income which never arose to the assessee. As discussed earlier, the entire property was already in existence having common shares and by way of the mutual settlement only the respective shares were determined. - Decided in favour of assessee.
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