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Facts
The assessee purchased agricultural land, claiming the investment was from mother-in-law's funds, a loan from relatives, and own sources. The AO added the entire investment as unexplained. The CIT(A) dismissed the assessee's appeal.
Held
The Tribunal observed that the assessee is an illiterate agriculturist and noted similar transactions by his co-brothers were set aside. It was held that the assessee deserves similar treatment.
Key Issues
Whether the investment in agricultural land can be considered unexplained without proper opportunity and verification, considering the assessee's background and similar cases of co-brothers.
Sections Cited
250, 139, 148, 144, 147, 282
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, JAIPUR BENCH “SMC”, JAIPUR
Before: Dr. S. SEETHALAKSHMI & SHRI GAGAN GOYAL
PER GAGAN GOYAL, A.M: This appeal by assessee is directed against the order of NFAC, Delhi dated 07.06.2024 passed u/s. 250 of the Income Tax Act, 1961 (in short ‘the Act’). The assessee has raised the following grounds of appeal: -
My mother-in-law and grandfather in law pressed to purchase Six Bigha agriculture land from them. 2, My mother in law has denied to accept Rs. 25,00,314/-. 3. I have invested Rs. 46,24,234/- to purchase agriculture land as per attached my Balance Sheet as under: -i.) 25,00,314/- from mother-in-law. ii.) 15,00,000/- loan taken from six relatives iii.) 6,23,920/- invested from own source.
2 The brief facts of the case are that the assessee under consideration purchased agricultural land situated in the village of Labana, Jaipur along with two other persons, his share of investment comes at Rs. 45,23,452/-. The assessee filed its return of income u/s. 139 on 18.07.2012. Based on the information mentioned (supra) case of the assessee was reopened and notice u/s. 148 of the Act was issued. In response to this notice the assessee filed its return of income on 12.01.2019. The case of the assessee was assessed u/s. 144 r.w.s. 147 of the Act and Rs. 45,23,452/- were added back as unexplained investment. The assessee being aggrieved with the same preferred an appeal before the Ld. CIT (A), who in turn dismissed the appeal of the assessee and confirmed the action of the AO. The assessee being further aggrieved with this order of the Ld. CIT(A), preferred the present appeal before us.
3 We have gone through the orders of the authorities below and submissions of the assessee alongwith ground taken before us. It is observed that as claimed by the assessee that he is an illiterate agriculturist and purchased land as mentioned (supra). Because of his illiteracy and poor educational back ground either he was not able to comply with the notices issued by the AO or may not be received even, hence the ex-parte order was there. Before the Ld. CIT (A) also, case was not presented well to meet the end of the justice.
4 Before us the assessee has filed its Balance-sheet, wherein showing investment in land at assets side and loans from his mother-in-law, Smt. Dhapa Devi amounting to Rs. 25,00,314/- and balance amount of loan amounting to Rs. 15 Lacs from six persons. In addition to this, the assessee also filed a copy of affidavit of Smt. Dhapa Devi to confirm the source and transaction. It is observed that the similar transactions were entered into by the two co-brothers of the assessee namely Shri Ram Kishor Sharma (PAN No. BMMPS 3401E) and Shri Sita Ram Sharma also and the matter of Shri Ram Kishor Sharma (PAN No. BMMPS 3401E) also travelled upto the stage of first appellate authority and on similar facts set-aside back to the file of the AO fresh consideration after giving the assessee a proper opportunity of being heard. (Copy of order furnished before us)
In view of the above facts on record, it is held that the assessee under consideration also deserve the same treatment what has been given to his co- brother mentioned above. In the light of above, ground taken by the assessee is allowed for statistical purposes matter is restored back to the file of the AO and further directed to verify the claim of the assessee afresh in the light of explanations and evidences submitted by the assessee. The AO is further directed to follow the provisions of section 282 of the Act as far as service of the notices are concerned and the assessee is directed to cooperate in the proceedings with his qualified A/R without seeking adjournment and file the documents on which he is relying to substantiate his matter.
In the result, the appeal of the assessee is allowed for statistical purposes.
Order pronounced in the open court on 25thday of March 2025.