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Aug 27, 2025
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Father receives Rs 4 lakh as cash gift in son’s marriage and wins income tax case of unexplained income; ITAT Ahmedabad ruling explained
Receiving gifts at weddings is pretty standard in India. However, getting Rs 4.31 lakh in cash as son's wedding gifts a month before the wedding date led to tax issues for Manubhai, father of a recently married son. The income tax assessing officer said that these cash gifts were allegedly received almost a month before the actual wedding, which goes against the norm of receiving such gifts on or after the wedding day. The tax department accused him of not fully disclosing his full and true income.
Manubhai tried to prove that his son’s marriage was real and even submitted the entire list of guests who gave cash gifts. He also submitted the wedding invitation card and marriage certificate, but the tax officer remained unconvinced, leading to the rejection of his claims and the addition of unexplained income amounts. The tax department said that he had Rs 18.51 lakh in unexplained income, which included Rs 14.2 lakh from contract work and Rs 4.31 lakh from unexplained marriage gifts of his son.
Initially, he filed an appeal against this order of the tax officer with the commissioner of appeals (CIT Appeals), but lost the case. Subsequently, he filed an appeal in ITAT Ahmedabad. On August 12, 2025, the Income Tax Appellate Tribunal (ITAT) Ahmedabad bench granted relief to Manubhai. Thus, his appeal was allowed by ITAT Ahmedabad and he won the case.
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