Rachit V Shah V. The Commissioner of Income Tax-7

ITTA/85/2023

AI Insights

The case involves an appeal by Rachit V Shah against various orders related to the assessment year 2015-16, concerning the execution of a gift deed and its implications under Section 54F of the Income Tax Act, 1961. The appellant contested the findings of the Income Tax Appellate Tribunal, Hyderabad, which held that the gift deed executed in favor of his father was a 'colourable device' to exploit tax provisions. The High Court's involvement was primarily to address the procedural aspects of the appeal and the substantive questions of law were not adjudicated upon due to the settlement under the 'Vivad Se Vishwas' scheme.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 768185 (HC-TELANGANA)
• Appeal Type: Others
• Pronouncement Date: 25-02-2025
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Assessee Lawyers: CH LAXMI CHAYA
• Keywords: Colourable device; Gift deed; Income Tax; Vivad Se Vishwas Scheme; Perversity of Facts
• Section: 54F; 151 CPC; 260-4

Judgement Text

"13447 | IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD TUESDAY, THE TWENTY FIFTH DAY OF FEBRUARY TWO THOUSAND AND TWENTY FIVE PRESENT THE HONOURABLE SRI JUSTICE P.SAM KOSHY AND THE HONOURABLE SRI JUSTICE NARSING RAO NANDIKONDA INCOME TAX TRIBUNAL APPEAL NO: 85 OF 2023 Appeal filed under Section 260(4) of the lncome Tax Act, 1 961 , against the order dated 15.03.2023 passed in lTA.No. 420lHydl2022 for the assessment year 2015-16 on the file of the lncome Tax Appellate Tribunal Hyderabad Bench 'A' Hyderabad preferred against the Order dated 21.01.2019 passed in lTA. No O 166/lTO-7(3)iHydlC lT(A)-3/20'17-18 on the file of the Commissioner of lncome Tax (Appeals)-3, Hyderabad preferred against the Order dated 29 12.2017 passed in PAN. AOCPS'1898E on the file of the lncome Tax officer, Ward - 7(3), Hyderabad. Between: Rachit V Shah, Son of Vijay Kumar Shah, aged 39 yrs, R/o H.No,15- 6- 519, Begum Bazar Hyderabad-5000'12 PAN. AOCPSlBgEE ...AppellanUAppellant AND '1 . The Commissioner of lncome Tax-7, Range-3, l.T. Towers, A.C. Guards, Hyderabad-500004 2. The lncome Tax Appellate Tribunal, A-Bench, Hyderabad. ... Respondents/Respondents lA NO: 1 OF 2023 Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to permit the appellant to amend the Memorandum of appeal by adding the Substantial question of Law as mentioned below: (H) Whether the findings of the lncome Tax Appellate Tribunal-Hyderabad that the appellant executed the Gift Deed to misuse and explot the provisions of Sec.54 F of the lncome Tax Act suffer from perversity and also the impugned order suffer from perversity of facts and findings? (l) Whether the finding of the lower Authorities that the execution of Gift deed by appellant in favour of hrs father amounts to colourable Device suffers from of facts and findings and that the rmpugned order must be hr:ld to be perverse? (J) Whether the Tribunal was justrfred in Law in observing the (irft Deed executed by the appellant in favour his father rs a colourable device und,:r Sec. 54F of the Act and its purported fir dings in this behalf are based on any rnaterial and/or have been arrived at b'/ rgnoring the relevant materials and/or by taking into consrderation of irrolevant/extraneous materials and/or based on hypothetical assumption and/or o'herwise arbrtrary, unreasonable and perverse? Counsel for the Appellant : Sri. CH Laxmi Chaya Counsel for the Respondents : ... The Court delivered the following: THE HON'BLE SRI JUSTICE P.SAM KOSHY AND THE HON'BLE SRI JUSTICE NARSING RAO NANDIKONDA I.T.T.A.No.85 of 2023 JUDGMENT . (per the Hon'ble Sri Justice P. Sam Koshy) When the rnatter is tal