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Facts
The assessee jointly purchased a property with others for Rs. 50 lakhs, contributing Rs. 10 lakhs for their 1/5 share. The Assessing Officer treated the market value of the property as Rs. 1,48,85,524/-, calculated the assessee's share as Rs. 29,77,105/-, and made an addition when the assessee failed to furnish details of the source of funds.
Held
The Tribunal held that for the interests of justice, the assessee should be given an opportunity to present their case before the Assessing Officer. The impugned order of the CIT(A) was set aside.
Key Issues
Whether the CIT(A) was justified in confirming the addition made by the AO without providing the assessee an adequate opportunity to present their case.
Sections Cited
147, 144
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Income Tax Appellate Tribunal, AHMEDABAD “SMC” BENCH
Before: Shri Sanjay Garg
आदेश/ORDER The present appeal has been filed by the Assessee against the order passed by the National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as “CIT(A)’] dated 07.11.2024 arising out of the assessment order passed u/s.147 r.w.s 144 of the Income Tax Act, 1961 (here-in-after referred to as “the Act”) relevant to the Assessment Year 2015-16.
The assessee in this appeal is aggrieved by the action of the lower authorities in making/confirming the addition of Rs. 29,77,105/-.
The brief facts of the case are that the assessee along with the four other persons purchased a property in joint name for a total consideration of Rs. 50 lakhs. The assessee was having 1/5 share in the property and contributed Rs. 10 lakhs. The Assessing Officer observed that the market value of the property was of Rs. 1,48,85,524/-. He took the value of the property @ 1,48,85,524/- and calculated the share of the assessee at Rs. 29,77,105/- instead of Rs. 10 lakhs as mentioned in the sale deed. He show caused the assessee to produce the source of the purchase amount. However, the assessee did not furnish any details. The Assessing Officer, thereafter, passed ex-parte order/best judgment assessment order and made the addition of the purchase value of the property of the assessee to the extent of the share of the assessee in the said property taking value of the property and made the impugned addition to Rs. 29,77,105/-. The ld. CIT(A) confirmed the addition so made by the Assessing Officer.
The ld. counsel for the assessee has submitted that the assessee has not paid any amount more than that was mentioned in the sale deed. He has further submitted that assessee should be given an opportunity to present his case before the Assessing Officer.
After considering the rival submissions, I am of the view 5. that interests of justice will be taken care of, if an opportunity is given to the assessee to present his case before the Assessing Officer. The impugned order of the ld. CIT(A) is set aside and the matter is restored to the file of Assessing Officer with a direction to decide the matter afresh after giving due opportunity of hearing to the assessee.
In the result, the appeal of the assessee is treated as allowed for statistical purposes.