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Facts
The assessee did not file their return of income for AY 2018-19. Information on the Insight Portal indicated the purchase of immovable property. The AO issued a notice u/s 148, seeking an explanation for the source of funds, which the assessee claimed came from the sale of land by their father.
Held
The Tribunal found that the assessee had provided complete details of the sale proceeds received by the father and deposited in a joint bank account. The assessee also submitted copies of sale deeds for land sold and purchased. The Tribunal held that the AO failed to verify the details properly and unnecessarily made the addition.
Key Issues
Whether the addition made by the AO was justified without proper verification of documents submitted by the assessee regarding the source of funds for property purchase.
Sections Cited
148
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DIVISION BENCH, ‘A’ CHANDIGARH
Before: SHRI RAJPAL YADAV & SHRI KRINWANT SAHAY
PHYSICAL HEARING O R D E R PER RAJ PAL YADAV, VP
The assessee is in appeal before the Tribunal against the order of ld. Commissioner of Income Tax (Appeals) [in short ‘the CIT (A)’] dated 23.09.2024 passed for assessment year 2018-19.
The appeal is time barred by 56 days. However, on due consideration of the explanation filed by the assesse, we condone the delay and proceed to decide the appeal on merit.
ITA No.1187/CHD/2024 A.Y.2018-19 2
The solitary grievance of the assessee is that ld. CIT(A) has erred in confirming the addition of Rs.1,19,92,350/- to the total income of the assessee.
The brief facts of the case are that assessee has not filed his return of income for A.Y. 2018-19. An information came on the Insight Portal that assessee has purchased immovable property for a sum of Rs.1,13,13,500/-. The AO issued notice u/s 148 of the Income Tax Act and sought the explanation of the assessee regarding sources of the deposit. The assessee contended that his father had sold multiple lands for a consideration of Rs.5,03,85,521/-, out of which assessee had purchased a land of Rs.1,13,13,500/- on 08.02.2018. The assessee has disclosed a joint Bank Account number of his father alongwith him. All these facts have been reproduced by the AO on page No. 4 to 6 of the impugned assessment order. However, all of a sudden, the AO has observed that assessee failed to categorically provide bank statement wherein sale consideration of land has been deposited. The assessee has submitted the copy of the Sale Deed as well as of the Bank Account, but ld. AO did not deem it necessary to verify and he made the addition.
ITA No.1187/CHD/2024 A.Y.2018-19 3
Appeal to the ld. CIT (A) did not bring any relief to the assessee.
With the assistance of ld. Representative, we have gone through the record carefully. We find that assessee has uploaded the complete details exhibiting the sale proceeds received by his father for sale of land which was deposited in the bank account No.03790700000817. This Account is a joint account of the assessee alongwith his father. These details have been filed by the assessee by way of an Annexure also. He has filed copies of all these Sale Deeds vide which land was sold as well as land was purchased. The copies of the Sale Deeds alongwith their vernacular translation in English has been placed on the record. We are of the view that ld. AO failed to verify the details in right perspective and unnecessarily made the addition. Accordingly, we allow the appeal of the assessee and delete the additions made to his income.
In the result, appeal of the assessee is allowed. Order pronounced on 24th September,2025.