Case Law Details
Sujata Banerjee Vs ACIT (ITAT Delhi)
Introduction: In the case of Sujata Banerjee vs. ACIT, heard by the Income Tax Appellate Tribunal (ITAT) Delhi, the main issue revolved around the addition of an amount of Rs.2,92,86,700 in the assessment year 2015-16. The appellant, Sujata Banerjee, a non-resident individual and a tax resident of the United States of America (USA), had purchased immovable properties valued at Rs. 2,40,50,300 and incurred additional costs of Rs.52,36,400 towards transfer charges during the financial year 2014-15.
Detailed Analysis: The Assessing Officer reopened the assessment under section 147 of the Income Tax Act since the appellant had not filed any return of income for this substantial investment in property. During the assessment proceedings, the Assessing Officer requested Sujata Banerjee to explain the source of the investment made in the purchase of the property. In response, she stated that the property was purchased jointly with her husband for a total consideration of Rs.2,40,50,300 using available funds.
However, the Assessing Officer did not accept this explanation and considered the amount of Rs.2,92,86,700 as unexplained income, subsequently adding it to Sujata Banerjee’s income. She challenged this draft assessment order and raised objections before the Dispute Resolution Panel (DRP). The DRP, after reviewing her submissions and evidence, directed the Assessing Officer to consider and verify her contentions, based on the documents and submissions available on record.
Despite these clear directions, the final assessment order reiterated the addition made in the draft assessment order. The appellant appealed to ITAT Delhi.
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