RINA KALPESH PATEL,MUMBAI vs. INCOME TAX OFFICER, MUMBAI

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “I”, MUMBAI BEFORE SHRI ANIKESH BANERJEE, JUDICIAL MEMBER AND SHRI ARUN KHODPIA, ACCOUNTANT MEMBER ITA No.1217/Mum/2026 (Assessment year: 2017-18)

Rina Kalpesh Patel vs ITO Ward 3(3)(1), Mumbai 402, May Fair Meridian, E- Air India Building, Churchgate, Wing, Nr. St. Blaise Church, Mumbai-400005 Ceaser Road, Amboli, Andheri (W), Mumbai-400058 PAN: ATIPP1722H APPELLANT RESPONDENT Assessee by : Shri Sachin Bagal-CA Revenue by : Shri Ashish Nagesh (Sr.DR) Date of hearing : 21/05/2026 Date of pronouncement : 26/05/2026 O R D E R Per: Anikesh Banerjee (JM): The instant appeal of the assessee preferred against the final order of the Ld. Income Tax Officer Ward 3(3)(1), Mumbai [for brevity the “Ld. AO”], order passed under section 147 r.w.s. 144 (for brevity ‘the Act’) for Assessment Year 2017-18, date of order 05.03.2024 in pursuance of the order of the Ld. CIT (DRP- 2), Mumbai (for brevity the ‘Ld. DRP’), order passed u/sec. 144C(5) of the Act date of order 29.02.2024.

2 ITA No.1217/Mum/2026 Rina Kalpesh Patel 2. The brief facts of the case are that the assessee is a non-filer of income tax return and nonresident Indian. She is the resident of Kenya. The information was duly received from DIT, Mumbai which was collected from SRO at Mumbai and stating that during the course of SFT verification survey was conducted at premises of SRO. The data was collected from SRO, Mumbai and it was found that the assessee with joint ownership with his husband has purchased a property for F.Y. 2016-17 relevant A.Y. 2017-18 amount to Rs.2,95,30,000/-. The stamp duty value as per the SRO amount to Rs.5,18,37,500/- related to this property. So the difference comes to Rs.2,23,07,500/- which attracts the section 56(2)(vii)(b) of the Act. The assessee’s case was reopened u/sec. 148 and draft assessment was duly issued u/sec. 144C (1) of the Act. The assessee had not filed her regular return of income for the relevant Assessment Year. But in response to notice u/s 148 of the Act the assessee had not filed the return. The proceeding was initiated as per provision of section 148A of the Act. The revenue had finally passed an assessment order u/sec. 144 of the Act. The assessee challenged the order before the Ld. DRP and Ld. DRP had uphold the observations of the Ld. AO related addition amount to Rs.2,95,30,000/-. But the Ld. DRP found that the assessee has purchased the property with co-owner of her husband so, the 50% was recommended for addition as unexplained investment u/sec. 69 amount to Rs.1,11,53,750/-. The Ld. AO passed the final assessment order and uphold the addition amount to Rs.1,11,53,750/-. Being aggrieved assesse filed an appeal before us. 3. The Ld. AR argued filed two paper books comprising pages 1 to 130 for paper book-1 & pages 1 to 109 for paper book 2 which have been placed on record. The Ld. AR stated that the assessee’s husband has invested the entire

3 ITA No.1217/Mum/2026 Rina Kalpesh Patel amount in relation to purchase of the flat. The assessee’s husband Mr. Kalpesh Prafulbhai Patel filed a notarized affidavit before the Bench duly executed on 23.03.2026 and the details of payments are duly depicted in the said affidavit. The relevant part of the said affidavit is reproduced as below:

4 ITA No.1217/Mum/2026 Rina Kalpesh Patel

5 ITA No.1217/Mum/2026 Rina Kalpesh Patel 5. Without considering the same, the revenue authority has passed the order. The Ld. AR further invited our attention in impugned order of the DRP where the DRP had made the observations related to purchase of the immovable properties. The relevant observations of the DRP is reproduced as below: Sr. Particulars No. 1 Address of the property Green bird developers pvt. Ltd. Property located at gulmoharX Road no.12., JVPD Mumbai, 400049 2 Date of purchase 09.02.2011 3 Purchase consideration 2,95,30,000 4 Stamp duty paid 25,92,000-00 5 Market value/value property as per stamp 5,18,37,500-00 dated 31.05.2016 duty authority 6 My share in property 0% 7 Payment schedule including date and My husband had paid full amount mode of payment 8 TDS deducted at the time of purchase of Yes property

6 ITA No.1217/Mum/2026 Rina Kalpesh Patel 7. We have heard the rival submissions and examined the documents available on record. In the present case, the assessee entered into an agreement for purchase of the property, pursuant to which an allotment letter was duly issued by the promoter. The consideration was paid through proper banking channels. Accordingly, the stamp-duty valuation of the property is required to be adopted as on the date of allotment, i.e., Financial Year 2010-11. On perusal of the valuation report dated 28.08.2023 duly issued by the “Valuation Officer-II”, the value of the property was determined at Rs.3,14,58,000/-. It is an undisputed fact that the assessee had purchased the flat jointly with her husband for a total consideration of Rs.2,95,30,000/-. The stamp-duty valuation of the property at the time of registration was Rs.5,18,37,500/-. However, the documentary evidence placed on record clearly establishes that the assessee had booked the flat during F.Y. 2010-11 and the allotment letter was duly issued during the said financial year. We further find that the assessee received the valuation report dated 28.08.2023 on 02.09.2023, i.e., after passing of the impugned assessment order. In our considered view, the matter deserves to be restored to the file of the Ld. AO for the limited purpose of considering the valuation report dated 28.08.2023 duly issued by the “Valuation Officer-II”. The assessee shall be afforded a reasonable opportunity of being heard during the set-aside assessment proceedings. The Ld. AO is directed to pass a speaking order after duly considering the submissions of the assessee as well as the valuation report obtained under section 55A of the Act.

7 ITA No.1217/Mum/2026 Rina Kalpesh Patel 8. In the result, the appeal of the assessee bearing ITA No.1217/Mum/2026 is allowed for statistical purpose. Order pronounced in the open court on 26th day of May 2026. Sd/- Sd/- (ARUN KHODPIA) (ANIKESH BANERJEE) ACCOUNTANT MEMBER JUDICIAL MEMBER Mumbai,िदनांक/Dated: 26/05/2026 SAUMYASr.PS Copy of the Order forwarded to: 1. अपीलाथ�/The Appellant , 2. �ितवादी/ The Respondent. 3. आयकरआयु� CIT 4. िवभागीय�ितिनिध, आय.अपी.अिध., मुंबई/DR, ITAT, Mumbai 5. गाड�फाइल/Guard file.

BY ORDER, //True Copy// (Asstt. Registrar), ITAT, MUMBAI