Harpreet Kaur Vs ITO (ITAT Amritsar)
Registered Sale Deed Cannot Be Ignored Because DVO Valuation Is Only an Estimate; ITAT Quashes Unexplained Investment Addition Because No Evidence Supported Higher Property Value; Addition Under Section 69 Deleted Because Joint Property Investment Was Fully Explained Through Loan and Savings; ITAT Rejects Addition Because Same Property Transaction Was Accepted in Co-Owner’s Assessment.
The Income Tax Appellate Tribunal (ITAT), Amritsar, allowed the appeal filed against an order passed under Sections 147 read with 144B of the Income Tax Act relating to addition under Section 69 for alleged unexplained investment in immovable property. The assessee, a salaried teacher employed with the State Education Department, had originally disclosed income of Rs. 9.21 lakhs. The case was reopened based on information flagged through the Insight Portal alleging investment of Rs.1.50 crores in purchase of residential property during FY 2017-18.
The assessee explained that the residential property was jointly purchased with her husband for Rs.40 lakhs plus registration charges, as reflected in the registered sale deed. The source of funds was stated to be a joint housing loan of Rs.32 lakhs from SBI along with contributions from the savings accounts of both co-owners. However, the Assessing Officer completed assessment by making an addition of Rs.1.10 crores under Section 69, treating the difference between the declared value and the value reflected on the Insight Portal as unexplained investment.
