COTHA VINOD HAYAGRIV,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-1(2) , BANGALORE

ITA 85/BANG/2024Status: DisposedITAT Bangalore28 May 2025AY 2017-18Bench: SHRI. LAXMI PRASAD SAHU (Accountant Member), SHRI. SOUNDARARAJAN K (Judicial Member)1 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal held that the AO made additions without confronting the investigation report and without a proper basis for estimating the rent. The rent received was found to be more than the BBMP rate, and the property was given to the son out of love and affection.

What were the facts?

A search was conducted in the assessee's case, leading to additions made by the AO on account of rental income from a property given to his son. The AO considered the municipal value and comparable rents, making an addition of Rs. 26,09,899/-.

What were the issues?

Whether the addition made by the AO on account of lower rental income from a property given to his son is justified, especially when the assessment is unabated and the AO's basis is questionable.

Which sections of the Income-tax Act were involved?

Section 132,Section 153A,Section 143(2),Section 139(1),Section 23(1)(a),Section 23(1)(b)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “A” BENCH : BANGALORE

Before: SHRI. LAXMI PRASAD SAHU & SHRI. SOUNDARARAJAN K

For Appellant: Shri. Ravishankar S V, Advocate
Hearing: 15.05.2025Pronounced: 28.05.2025

Per Laxmi Prasad Sahu, Accountant Member :

This appeal filed by the assesseeagainst the Order passed by the CIT(A) on 13.07.2023, vide DIN No.ITBA/APL/M/250/2023-24/1054348040(1).

2.

Briefly stated the facts of the case are thata search and seizure under section 132 of the Act was carried out in the case of the assessee on 04.01.2018. The case was centralized to ACIT, Central Circle – 1(2), Bangalore, by the CIT(A), Bangalore – 1 vide Order No.7/Pr.CIT/BLR-1/90/Centralization/2018- 19 dated 2.04.2015. Notice under section 153A of the Act was issued to the assessee on 04.02.2019 calling for the return of income. In response

The order continues below.

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