Kapish Agarwal Vs ITO (ITAT Hyderabad)
The Hyderabad Bench of the Income Tax Appellate Tribunal considered the assessee’s appeal against the order of the Commissioner of Income Tax (Appeals), NFAC, for Assessment Year 2022-23. The dispute primarily concerned two additions made by the Assessing Officer: an addition of ₹66,63,600 under Section 69 of the Income-tax Act, 1961, towards unexplained investment in immovable property, and an addition of ₹36,12,625 under Section 56(2)(x) on account of the difference between the stamp duty value and the purchase consideration of the property.
The assessee had filed the return of income declaring total income of ₹27,93,213. During scrutiny assessment, the Assessing Officer noted that the assessee, along with other co-purchasers, had acquired immovable property for ₹22,37,50,000 and incurred registration and related expenses of ₹29,04,400, resulting in a total acquisition cost of ₹22,66,54,400. The assessee’s share was determined at ₹66,63,600. As the Assessing Officer was not satisfied with the explanation regarding the source of investment, the amount was treated as unexplained investment under Section 69. The Assessing Officer also found that the stamp duty value of the property exceeded the actual purchase consideration by ₹1,44,50,500 and brought the assessee’s one-fourth share of ₹36,12,625 to tax under Section 56(2)(x). The assessment was completed under Section 143(3) read with Section 144B, and both additions were confirmed by the Commissioner (Appeals).
