Manoj Kumar Gupta Vs ACIT (ITAT Delhi)
Co-owner’s Share Matters- Joint Ownership Below ₹50 Lakh Bars Reopening Beyond 3 Years: Delhi ITAT Quashes 147 Notice
NRI’s Flat Bought via NRE Funds & Housing Loan—No Escapement, No 69 Addition
Delhi ITAT ‘D’ Bench in Manoj Kumar Gupta vs ACIT, Circle–International Taxation-1(3)(1), Delhi (ITA No.2759/Del/2025, AY 2016-17, order dated 24-12-2025) quashed the reassessment u/s 147 and deleted addition u/s 69, holding that where the assessee’s share in a jointly owned property is below ₹50 lakh, reopening beyond three years is without jurisdiction.
Assessee, an NRI resident of the USA since 2003, jointly purchased a residential flat in “The Lake of Omaxe” project for ₹61.06 lakh, along with Ms. Rachna Gupta. AO reopened the assessment after three years on the premise that purchase exceeded ₹50 lakh, based on TDS u/s 194-IA @1% reflected in the system, and made an addition of ₹11.18 lakh u/s 69.
ITAT noted that allotment letter and housing loan sanction clearly evidenced joint ownership. In the absence of a specified ratio, ownership must be taken as equal, bringing the assessee’s share below ₹50 lakh. Consequently, the pre-condition of section 149(1)(b) (escaped income represented by an asset exceeding ₹50 lakh) was not satisfied, rendering the assumption of jurisdiction invalid.
On merits as well, Tribunal found that the entire consideration was paid through banking channels, sourced from SBI NRE account and PNB Housing Finance loan, with full documentary trail. Hence, no part of the investment could be treated as unexplained u/s 69.
Accordingly, ITAT allowed the appeal in full, quashing the reassessment and deleting the addition.
Key takeaway: For post-three-year reopenings, ₹50 lakh threshold applies to the assessee’s share, not the gross property value. Joint ownership + explained bank trail = no 147, no 69
FULL TEXT OF THE ORDER OF ITAT DELHI
