Truptiben Nilangkumar Trivedi Vs ITO (ITAT Ahmedabad)
Cash Component of Property Sale Was Jointly Held by Seven Legal Heirs – Entire ₹6.90 Lakh Cannot Be Assessed in Hands of One Co-Owner; Addition u/s 68 Deleted
Assessee, one of seven legal heirs of late Shri Kantibhai Mujibhai Patel, challenged addition of ₹6,90,000/- treated as unexplained cash u/s 68. The property had been occupied for decades by a long-standing tenant who gradually paid cash in small instalments to the original owner. After the owner’s death, the property devolved upon seven heirs, & the entire cash component in the sale deed represented joint receipt of all co-owners—not income of the Assessee alone.
Tribunal noted that:
- The sale deed itself reflected joint ownership.
- Cash receipts were collective, not attributable to any single heir.
- AO made the addition solely because the Assessee was one of the executants of the deed, without appreciating the shared nature of ownership & receipt.
Holding that taxing the entire sum in the hands of one heir was factually incorrect & legally untenable, Tribunal deleted the addition & the consequential penalty.
Result: Appeal allowed; entire addition u/s 68 deleted.
FULL TEXT OF THE ORDER OF ITAT AHMEDABAD
This appeal is filed by the Assessee against the appellate order dated 18.03.2025 passed by the Commissioner of Income Tax (Appeals)National Faceless Appeal Centre, Delhi, relating to the Assessment Year 2019-20.
