Gajendra Pal Sharma Vs ITO (ITAT Delhi)
ITAT Delhi held that the assessee has duly explained the source of his share of the investment made in the property purchased. Accordingly, addition towards unexplained investment under section 69 of the Income Tax Act is directed to be deleted.
Facts- AIR information was received from the office of the sub-registrar u/s 285BA of the Income-tax Act, 1961 relating to purchase of immovable property by the assessee for Rs. 90,95,000/-including stamp duty on 16.02.2012. To verify the transaction as reported in the AIR information, AO issued and served notice u/s 133(6) of the Act to the assessee and in response no compliance was made by the assessee. Notice u/s 148 was subsequently issued on 29.03.2019.
In the course of assessment proceedings, AO was not satisfied with the explanation of the assessee and made an addition of Rs. 70,95,000/- u/s 69 of the I T Act. CIT(A) restricted the addition to Rs. 41,47,382/-. Being aggrieved, the present appeal is filed.
Conclusion- Held that the assessee has duly explained the source of his share of the investment made in the property purchased. As far as the veracity of unsecured loan taken by the wife of the assessee and amount received on account of jewellery is concerned the same may be decided at appropriate time in appropriate case as the neither the AO nor the CIT(A) has examined/ adjudicated on this issue. We therefore direct the AO to delete the addition of Rs 41,47,382/- on account of unexplained investment made u/s 69. The ground no 2 is accordingly allowed.
