BATOOL RASHID AHMED BAKHLA ,MUMBAI vs. INCOME TAX OFFICE WARD 23(1)(1), MUMBAI

In this case, the Assessing Officer (AO) vide assessment order dated 17.04.2021, has made the addition of Rs.1,31,733/- under Section 56(2) (7)(B)(ii) of the Act, being 1/3 of Rs.3,95,200/- as difference between the stamp duty value of property and transacted value at Rs. 1,48,95,200/- and Rs.1,45,00,000/- respectively and the addition of Rs.2,00,000/- under Section 69A of the Act.

The Assessee being aggrieved challenged the said addition before the ld. Commissioner by filing first appeal, who vide impugned order though deleted the addition of Rs.1,31,733/-, however, affirmed the addition of Rs.2,00,000/- being deposit made by the tenant in the month of March, 2018 in respect of property taken on rent, more or less, doubting the advance taken by the Assessee.

We observe from the impugned order that leave and license was granted in favor of the tenant vide leave and license agreement dated 06.04.2018, as also reproduced by the ld. Commissioner, wherefrom it clearly appears that the said agreement was executed on 06.04.2018 and registered on 16.04.2018 and therefore, we could not find out any plausible reason doubting the amount of Rs.1,00,000/-, as depicted in the leave and license agreement and thus, the addition of Rs.1,00,000/- on this aspect, is deleted.

However, we deem it appropriate to remand the issue with regard to the addition of Rs. 1,00,000/- made by the AO as affirmed by the ld. Commissioner under Section 69A of the Act, as unexplained money, to the file of the Jurisdictional Assessing Officer, as the Assessee has specifically undertakes to provide the detailed information in respect of such amount, if the opportunity is granted. Thus, the issue with regard to the addition of Rs.1,00,000/- under Section 69A of the Act, is remanded to the Jurisdictional AO for decision afresh, suffice it to say, by affording reasonable opportunity of being heard to the Assessee.

In the result, Assessee’s appeal is partly allowed for statistical purposes.