New Delhi, July 14 -- The Hyderabad Bench of the Income Tax Appellate Tribunal (ITAT) has ruled that money received as a gift from a mother cannot be treated as "unexplained" if the taxpayer proves the source and establishes that the gift is genuine, TaxGuru reported.

The ruling came in the case of Manikanta Prudhvi Prabhakar Jonnala vs Income Tax Officer (ITO), where the Tribunal deleted an addition of Rs.5.72 lakh made under Section 69 of the Income Tax Act, 1961.

The taxpayer had purchased a residential property. During assessment, the Income Tax Department questioned the source of Rs.5.72 lakh used for the purchase.

Since the Assessing Officer (AO) was not satisfied with the explanation, the amount was treated as an unexplained inv...