Rajesh Kumar Mangla Vs DCIT (ITAT Delhi)
The appeal before the Income Tax Appellate Tribunal, Delhi concerned an addition made on account of alleged undisclosed rental income for Assessment Year 2021–22. The assessee, an individual, had filed his return declaring total income of ₹33,02,320, which was later revised at the same amount. Following a search under section 132 in a related group, the Assessing Officer noted that the assessee had received rent of ₹1,72,000 per month from a tenant but had disclosed rental income only for certain months. The Assessing Officer therefore added rental income for the remaining period and allowed statutory deduction under section 24(b), treating the balance as undisclosed income under section 69B.
The assessee contended that the property had been let out jointly to two tenants at a consolidated rent of ₹1,80,000 per month and that rent of ₹9,00,000 received for the period from November 2020 to March 2021 had been duly disclosed. It was further explained that the property remained vacant for the remaining period. Confirmations from both tenants were filed, stating that the rent paid was ₹9,00,000 jointly to the assessee and his wife. Copies of the rent agreement and bank statements evidencing the payments were also produced.
