MANIK BAPU KAMBLE,KOLHAPUR vs. INCOME-TAX OFFICER, WARD - 2, ICHALKARANJI

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ITA 181/PUN/2019Status: FixedITAT Pune30 April 2019AY 2008-094 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal found that the Assessing Officer rejected the assessee's explanation without assigning reasons. Considering the facts, the assessee had provided a valid explanation for the source of investment through past savings, sale of gold, and hand-loans.

What were the facts?

The assessee, a peon with a meager salary, purchased a plot of land for Rs. 4,10,660/-. The Assessing Officer added Rs. 3,63,504/- as unexplained investment, considering only the assessee's take-home salary for the year.

What were the issues?

Whether the addition made by the Assessing Officer on account of unexplained investment in land was justified, considering the assessee's explanation of the source of funds.

Which sections of the Income-tax Act were involved?

Section 69A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, PUNE BENCH “SMC”, PUNE

Before: SHRI R.S. SYAL

For Appellant: Shri Manik Bapu Kamble -Assessee
For Respondent: Shri Rajesh Gawali

PER R.S.SYAL, VP : This appeal by the assessee arises out of the order passed

by the CIT(A)-2, Kolhapur on 13-04-2016 in relation to the

assessment year 2008-09.

2.

The only issue raised in this appeal is against the

confirmation of addition of Rs.3,63,504/-, being, unexplained

investment made in purchase of a piece of land.

3.

Briefly stated, the facts of the case are that the Assessing

Officer (AO) got information about the assessee having

2 ITA No.181/PUN/2019 Manik Bapu Kamble

purchased a plot of land for a sum of Rs.3,87,000/- on which

registration charges and stamp duty etc. were incurred making

total investment at Rs.4,10,660/-. On being called upon to

furnish the source of investment, the assessee submitted that he

was working as a Peon in Shri Swami Vivekanand Shikshan

Sanstha, Vivekanand College, Kolhapur and his take-home

salary for the year was Rs.47,156/- He further submitted that

the purchase of plot was made by utilizing his past savings from

salary, sale of gold and raising of hand-loans from his relatives

etc. Not convinced with the assessee’s submission, the AO

made an addition of Rs.3,63,504/- after allowing deduction of

Rs.47,156/-, being, take-home salary for the year from the total

amount spent on purchase of plot of land. The ld. CIT(A)

confirmed the addition.

4.

Having heard both the sides and gone through the relevant

material on record, it is seen that the assessee is a Peon working

in a college at a meager salary of around Rs.4,000/- per month.

He made purchase of a plot for a sum of Rs.4,10,660/- including

stamp duty. In order to finance such a plot, he utilized his past

savings from salary for earlier years. He sold certain gold

jewellery and also raised certain loans. The AO has rejected the

3 ITA No.181/PUN/2019 Manik Bapu Kamble

explanation of the assessee without assigning any reasons.

Considering the entirety of the facts and circumstances of the

instant case, I find that the assessee has successfully tendered

explanation about the source of investment in the purchase of

plot. Overturning the impugned order, I order to delete the

addition of Rs.3,63,504/-.

5.

In the result, the appeal is allowed. Order pronounced in the Open Court on 30th April, 2019.

Sd/- (R.S.SYAL) उपा�य� उपा�य�/ VICE PRESIDENT उपा�य� उपा�य�

पुणे Pune; �दनांक Dated : 30th April, 2019 सतीश आदेश क� क� �ितिलिप �ितिलिप अ�ेिषत अ�ेिषत / Copy of the Order is forwarded to : क� क� �ितिलिप �ितिलिप अ�ेिषत अ�ेिषत आदेश आदेश आदेश अपीलाथ� / The Appellant; 1. ��यथ� / The Respondent; 2. आयकर आयु�(अपील) / 3. The CIT (Appeals)-2, Kolhapur 4. The Pr. CIT-2, Kolhapur िवभागीय �ितिनिध, आयकर अपीलीय अिधकरण, पुणे “SMC” / 5. DR ‘SMC’, ITAT, Pune; गाड� फाईल / Guard file. 6. // True copy // आदेशानुसार आदेशानुसार आदेशानुसार/ BY ORDER, आदेशानुसार

// True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण ,पुणे / ITAT, Pune

ITA No.181/PUN/2019 Manik Bapu Kamble

Date 1. Draft dictated on 30-04-2019 Sr.PS 2. Draft placed before author 30-04-2019 Sr.PS 3. Draft proposed & placed JM before the second member 4. Draft discussed/approved JM by Second Member. 5. Approved Draft comes to Sr.PS the Sr.PS/PS 6. Kept for pronouncement on Sr.PS 7. Date of uploading order Sr.PS 8. File sent to the Bench Clerk Sr.PS 9. Date on which file goes to the Head Clerk 10. Date on which file goes to the A.R. 11. Date of dispatch of Order. *

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