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Facts
The Assessing Officer (AO) reopened the assessee's case based on information about the purchase of immoveable property for Rs. 43,00,000. The assessee claimed it was jointly purchased with his wife. The AO added the full amount due to lack of evidence regarding the wife's income and investment source. The CIT(A) confirmed an addition of Rs. 14,04,650.
Held
The Tribunal held that the assessee had provided various documents, including cash books and ledgers, to explain the source of investment. The CIT(A) had not considered the agricultural income of the assessee to the extent of Rs. 9,66,000, which was part of the explanation. Therefore, the assessee successfully explained the entire amount of the investment.
Key Issues
Whether the assessee has sufficiently explained the source of investment in the immoveable property, and if the CIT(A) properly considered all the evidence provided by the assessee.
Sections Cited
147, 148
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, SURAT “SMC” BENCH, SURAT
Before: DR. B.R.R. KUMAR, VICE- & MS. SUCHITRA KAMBLE
O R D E R PER SUCHITRA KAMBLE, JUDICIAL MEMBER:-
This is an appeal filed against the order dated 11-06-2025 passed by National Faceless Appeal Centre (NFAC), Delhi for assessment year 2009-10.
The case of the assessee was reopened based on the information that the assessee had purchased immoveable property valued at Rs.43,00,000/-. The assessee submitted before the A.O. that the property was jointly purchased by him and his wife amounting to Rs. 43,00,000/-. Since the assessee did not produce evidence such as return of income of wife and the source of income for said investment, the Assessing Officer
The ld. A.R. submitted that the assessee has given the details of cash book along with ledger of land which is as follows:-
Page No. Description 27 This is page is a ledger of land at Pardi Ser. No. 122, 123/1, 121/P in the books of assessee from 01.04.2008 to 01.03.2009 indicating cash payment. 28 This is page is a ledger of Advance Agn. Land Dhirubhai in the books of assessee from 01.04.2008 to 01.03.2009 indicating cash payment. 29 This page is bank statement of account no. 1000/4607 of the assessee maintained with SardarBhiladwalaPardi People's Co.-Op. Bank Ltd. 30 This page is cash book of assessee from 25.04.2008 to 23.06.2008 31 This page is cash book of assessee from 30.06.2008 to 19.08.2008 32 This page is cash book of assessee from 31.08.2008 to 24.10.2008 33 This page is cash book of assessee from 24.10.2008 to 10.11.2008 34 This page is cash book of assessee from 10.11.2008 to 30.01.2009
The ld. D.R. relied upon the assessment order and order of the CIT(A).
We have heard both the parties and perused all the relevant material available on record. The CIT(A) has not considered the agricultural income of the assessee to the extent of Rs. 9,66,000/- for which the assessee has given the details from 32 to 38 page of the paper book. From the perusal of the record, it appears that the assessee has explained the entire amount including that of Rs. 14,04,650/-, therefore, we hold that the assessee explained through various documents, the source of investment.
Order ispronounced in the open Court on 03.02.2026