KHYATI DILIPKUMAR DAVE,DUBAI vs. OFFICE OF THE INCOME TAX OFFICER, WARD 1,INT.TAX.,AHM, AHMEDABAD, GUJARAT,INDIA

In appeal, with respect to addition of Rs. 71,72,077/- on account of unexplained investment in immovable property, the CIT(A) observed that out of the aforesaid amount, a sum of Rs. 55,00,000/- had been sourced out of housing loan taken from ICICI Bank. Further, on perusal of the said deed, CIT(A) observed that investment of a sum of Rs. 13,00,000/- was made by the assessee in an earlier / previous assessment year (A.Y. 2016-17). Accordingly, Ld. CIT(A) gave relief to the assessee for a sum Khyati Dilipkumar Dave vs. ITO Asst. Year –2018-19 - 3– of Rs. 68,00,000/- (Rs. 13,00,000/- + Rs. 55,00,000/-) and confirmed the balance addition amounting to Rs. 3,72,077/- in the hands of the assessee with the following observations:

However, with respect to the balance addition of Rs. 2,21,204/- on account of credit entries in assessee’s bank account and the sum of Rs. 21,586/- on account of unexplained investment in Birla Sun Life Mutual Fund, CIT(A) confirmed the addition by observing that the assessee could not provide plausible evidences and supporting documents about the source of such credits/investments.

The assessee is in appeal before us against the aforesaid order passed by Ld. CIT(A). With respect to the addition of Rs. 3,72,077/- which was confirmed by Ld. CIT(A) on account of unexplained investment in immovable property, the assessee submitted that this Khyati Dilipkumar Dave vs. ITO Asst. Year –2018-19 - 4– amount was substantially sourced out of cash gift received by the assessee from her mother. In support of this, the Counsel for the assessee also drew our attention to a confirmation filed by the mother of the assessee stating that she had given a sum of Rs. 2,00,000/- in cash to the assessee towards purchase of immovable property. Further, the Counsel for the assessee submitted that the entire addition towards unexplained investment in the property has been confirmed in the hands of the assessee, without appreciating the fact that the property was jointly held by the assesse, alongwith her husband.

On going through the contents of the order passed by Ld. CIT(A), and the evidences in the form of confirmation filed by the assessee from her mother, in the interest of justice, the matter is hereby set-aside to the file of Assessing Officer for de-novo consideration.

In the result, Ground No. 1 with respect to the aforesaid addition is allowed for statistical purposes.

With respect to the addition of unexplained credit entries amounting to Rs. 2,21,204/-, the Counsel for the assessee submitted that these amounts have been transferred to the account of the assessee from her husband’s bank account. The Counsel for the assessee drew our attention to bank account annexed at Page 61 of the Paper Book. It was submitted that these facts had not been duly verified by the Tax Authorities and the addition had been made on account mis-appreciation of assessee’s set of facts. With respect to addition of Rs. 21,586/- (unexplained investment in Birla Sun Life Mutual Fund) it was submitted that this amount was again received by the assessee from her husband’s bank account and accordingly, the source thereof stood duly explained.

On going through the facts of the instant case, and the evidences submitted by the assessee, in support of the contention that these investments/credits were transfers made to the assessee’s bank account from her husband’s bank account, in the interest of justice, both these issues are restored to the file of Assessing Officer, for de-novo consideration.

In the result, the appeal of the assessee is allowed for statistical purposes. This Order pronounced in Open Court on 20/06/2025