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Facts
The assessee, identified as a non-filer for AY 2010-11, purchased property for Rs. 40,00,000/- and made cash deposits of Rs. 17,58,500/-. The case was reopened, and assessment was completed under Section 144. The CIT(A) deleted the cash deposit additions but enhanced the property addition by Rs. 2,10,000/-.
Held
The Tribunal allowed the appeal on the first ground regarding the addition for property purchase, accepting the sources of funds from family members. The enhancement made by the CIT(A) on account of unexplained expenditure was also deleted.
Key Issues
Whether the additions made for unexplained investment in property and unexplained expenditure were justified, and if the sources of funds were duly proved.
Sections Cited
148, 144
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Income Tax Appellate Tribunal, “C” BENCH, AHMEDABAD
Before: DR. BRR KUMAR & MS SUCHITRA KAMBLE
(Assessment Year: 2010-11) Kshama Sanjay Tripathi, Vs. The Income Tax Officer, 76, Super Bunglow, Ward-4(2)(2), Science City, Ahmedabad. Sola Road, Ahmedabad-380060. [PAN No.AFYPT1577L] (Appellant) .. (Respondent) Appellant by : Shri Mehul K Patel, AR Respondent by: Shri Rignesh Das, Sr. DR 13.01.2025 Date of Hearing Date of Pronouncement 24.01.2025 O R D E R PER: DR. BRR KUMAR, VICE PRESIDENT:
This appeal has been filed by the Assessee against the order passed by the Ld. Commissioner of Income Tax (Appeals)-8, Ahmedabad vide order dated 10.10.2017 passed for the Assessment Year 2010-11.
The Assessee has taken the following grounds of appeal:
1. That, on facts, and in law, the learned CIT (A) has grievously erred in confirming the addition of Rs. 40, 00,000/- made as unexplained investment in purchase of property.
Asst.Year –2010-11 - 2– 2. That on facts and in law, the learned CIT (A) has grievously erred in enhancing the assessment by making addition of Rs.2,10,000/- towards unexplained expenditure without issuing notice of enhancement as required by law. 3. The appellant craves leave to add, alter, and amend any ground of appeal.
Facts of the case are that the assessee was identified as a non filer in the NMS [Non-filler Management System) who has not filed return of income for the A. Y. 2010-11. The AIR information on the ITD systems of the revenue in respect of the assessee was that the assessee had purchase of immovable property of Rs. 40,00,000/- and also made Cash Deposits in bank account of Rs. 17,58,500/- during the year under consideration. In view of above backdrop, the case was reopened and notice u/s 148 of the IT Act was issued on 29/03/2017 was sent through Speed post which was dully served to the assessee at the known address. Owing to the non-filing of the return, the assessment has been completed u/s.144 determining total income of Rs.40,00,000/- on account of purchase of property and Rs.17,58,500/-on account of cash deposits in the bank account. The assessee contested the additions before the Ld. CIT(A)., who has deleted the additions of Rs.17,58,500/- made on account of cash deposits in the bank account but enhanced the addition by Rs.Rs.2,10,000/- being unexplained expenditure
Aggrieved by the order of the Ld. CIT(A), the Assessee filed appeal before the Tribunal.
Before us, the Ld. AR argued explaining the sources of Rs.40,00,000/- receive by the assessee for the purchase of property.
Asst.Year –2010-11 - 3–
The Ld.AR explained that the assessee received the amount from the husband, father and family members and the sources have been aptly proved before the before the Ld. CIT(A) which he chooses to ignore. The details are tabulated as under:
Sr. Name Relation Amount (In Rs.) No 1 Deb Brat Mishra Brother 28,50,000/- 2. Sanjay Tripathi Husband 4,90,000/- 3. Prabhakar Mishra Father 1,40,000/- 4. Yugal Kishore Tripathi Father-in-law 5,00,000/-
On the other hand the Ld.DR argued that the assessee could not filed any confirmation and creditworthiness of the person who have lend the monies.
We have gone through the bank statements of all the persons mentioned at page no.5, 6, 8, 20, 22, 32 to 34, 31 to 35 and 38 of the paper book which reflect lending of the monies by this parties to the assessee. All these monies have been received from the family members and due evidences have been furnished before the revenue authorities and no adverse inference could be drawn about the sources of these monies against of the assessee as the assessee has duly discharged the primary onus of proving the sources. Hence the appeal of the assessee on ground no.1 is hereby allowed. With regard to the enhancement on account of unexplained expenditure, on going through the record we find no reason for such enhancement and especially in the absence on any issue of notice to the assessee.
Asst.Year –2010-11 - 4–
In the result, the appeal of the assessee is allowed.
This Order pronounced in Open Court on 24.01.2025
Sd/- Sd/- (SUCHITRA KAMBLE) (DR. BRR KUMAR) JUDICIAL MEMBER VICE PRESIDENT (True Copy) Ahmedabad; Dated 24.01.2025 Manish, Sr. PS TRUE COPY आदेश क� �ितिलिप अ�ेिषत/Copy of the Order forwarded to : अपीलाथ� / The Appellant 1. 2. ��यथ� / The Respondent. 3. संबंिधत आयकर आयु� / Concerned CIT 4. आयकर आयु�(अपील) / The CIT(A)- 5. िवभागीय �ितिनिध, आयकर अपीलीय अिधकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाड� फाईल / Guard file. आदेशानुसार/ BY ORDER,