Dhoomi Devi Vs ITO (ITAT Dehradun)
Section 54F Deduction Remanded as Tenants’ Affidavits Suggest Commercial Use of Properties, No Addition Without Corroborative Evidence: ITAT Deletes ₹50 Lakh On-Money Addition in Property Deal and Presumption Under Section 132(4A) Cannot Be Applied Against Assessee When Documents Seized from Third Party
The appeal before the ITAT Dehradun arose from the order dated 08.08.2024 passed by the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, under section 250 of the Income Tax Act, 1961, against the assessment order dated 05.03.2024 passed under section 143(3) read with section 144B for Assessment Year 2022–23.
The assessee, an individual, was selected for scrutiny under CASS on the ground of “large investment in immovable property as compared to total income.” The Assessing Officer (AO) determined the total income at ₹2,70,31,224/- as against the returned income of ₹29,45,000/-. During the relevant year, the assessee sold a property and purchased another property. She claimed deduction of ₹1,90,86,224/- under section 54F and ₹50 lakhs under section 54EC for investment in NHAI bonds. The AO disallowed the deduction under section 54F on the ground that the assessee owned more than one residential property on the date of transfer and also made an addition of ₹50 lakhs as unexplained on-money allegedly paid in cash for purchase of property. The CIT(A) upheld both disallowance and addition.
