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Facts
The Assessing Officer made an addition of Rs. 7 lakhs to the assessee's income for AY 2011-12, alleging cash payments for a flat purchase. The assessee contended that the sale deed was registered in FY 2011-12 (AY 2012-13) and the payment was made on 03.05.2011.
Held
The Tribunal held that since the sale deed was registered in FY 2011-12 (AY 2012-13), the amount could not be taxed in AY 2011-12. Therefore, the addition made by the Assessing Officer was directed to be deleted.
Key Issues
Whether the addition made by the Assessing Officer for the assessment year 2011-12 is valid when the sale deed registration falls in the assessment year 2012-13.
Sections Cited
250, 143(3), 147, 148, 131
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, PUNE BENCHES “SMC” :: PUNE
Before: DR.DIPAK P. RIPOTE & SHRI VINAY BHAMORE
आदेश/ ORDER
PER DR. DIPAK P. RIPOTE, AM:
This is an appeal filed by the assessee directed against the order of ld.CIT(A)[NFAC] under section 250 of the Income Tax Act, 1961 dated 12.06.2024 for the A.Y.2011-12, emanating from assessment order u/s.143(3) r.w.s 147 of the Act, dated 28.12.2018.
Condonation of delay : 2. There is a delay of 186 days in filing appeal before this Tribunal. Assessee filed an Affidavit. The contents of he Affidavit are reproduced as under :
2.1 We find sufficient and reasonable cause for Delay, hence the delay is condone.
Findings & Analysis : 3. In this case, Assessing Officer issued notice u/s.148 of the Act, dated 26.03.2018 for A.Y.2011-12, based on the information received from DDIT(Investigation), Pune regarding purchase of Flat by Assessee. The Assessing Officer has reproduced the reasons recorded for reopening in the assessment order. It is noted that Assessing Officer made addition of Rs.7 lakhs alleging that Assessee has made cash payments and assessee could not explain the source of the same. The DDIT(Investigation) has noted that assessee entered into registered sale deed on 04.05.2011 for sale of Flat No.5, Apsara Apartments, Lohegaon, Pune with Mr. Sumit Jabbal. Assessee has also filed copy of registered sale agreement with us. Thus, the sale deed took place in F.Y.2011-12, means A.Y.2012-13. However, Assessing Officer has made addition for A.Y.2011-12. The Assessing Officer has relied on a statement u/s.131 of the Act, of the Assessee recorded by DDIT(Investigation). However, Assessing Officer has not reproduced the statement in the Assessment Order. Assessing Officer has presumed that cash was paid in earlier assessment year. However, Assessee in his written submission has submitted that Rs.8 lakhs was paid in cash to Abhyuday Co-operative Bank, on 03.05.2011 where the Flat was mortgaged. Ld.DR has not rebutted these pleadings of the assessee. Assessee had also taken this plea during the assessment proceedings. However, the Assessing Officer has not bothered to verify the facts and made addition in A.Y.2011-12.
In these facts and circumstances of the case, since the agreement was registered in F.Y.2011-12(A.Y.2012-13), the impugned amount cannot be taxed in A.Y.2011-12. Therefore, we direct the Assessing Officer to delete the addition of Rs.7 lakhs. Accordingly, grounds of appeal raised by the assessee are allowed.
In the result, appeal of the assessee is allowed. Order pronounced in the open Court on 22 May, 2025.