Prem Singh Saluja Vs ITO (ITAT Raipur)
ITAT Raipur held that entire addition of transaction in the hands of assessee under section 69 of the Income Tax Act as unexplained investment not tenable since the same needs to be allocated between joint beneficial owners. Thus, matter restore back to file of AO.
Facts- The assessee is an individual, engaged in the business of Transporting. As per information, it is revealed that the assessee had purchased immovable property valued at 51,88,101/- (Fair Market Value at Rs. 79,44,000/-) in FY 2010-11. It is further noted by AO, that the assessee had not filed his return of income for the relevant year, hence the source of such investment in the form of improvable property remained undisclosed. Based on such reasons to believe, the reopening assessment proceedings are initiated by AO by issuance of notice u/s 148 of the Act. AO added Rs. 51,53,100/- as unexplained investment u/s. 69.
CIT(A) dismissed the appeal of the assessee. Being aggrieved, the present appeal is filed.
Conclusion- Held that the entire addition of the transaction for Rs.51,53,100/- cannot be made in the hands of assessee, treating the same as unexplained investment u/s 69 of the Act, the same needs to be allocated between the joint beneficial owners, as emerging from the order under PBPT Act, dated 20.06.2019. It would be pertinent to note that since (i) the assessee along with (ii) the Benamidar Mr. Bhanupratap Singh and (iii) the other beneficial owner M/s Bhatia Energy and Minerals Pvt. Ltd, as joint appellant had filed an appeal challenging the decision of adjudicating authority, PBPT dated 20.06.2019, before the ATPML, New Delhi and Shri Dharam Singh Meena, IRS, Initiating Officer, ACIT, Raipur, (C.G.), is the respondent in the said appeal, which is pending for adjudication, therefore, it would be premature to decide the issue at this juncture, whereas, it would be appropriate to restore the matter back to the file of Ld. AO with the direction to adjudicate the case of assessee afresh, taking into cognizance the orders of authorities under PBPT Act, 1988.
