Dharvinder Singh Vs CIT(A) (ITAT Chandigarh)
Tribunal Deletes ₹1.19 Cr Addition – Land Purchase Funded by Father’s Sale Proceeds- Tribunal Accepts Evidence of Joint Bank Account & Sale Deeds- Unexplained Investment Addition Quashed – Tribunal Finds AO Failed to Verify Evidence
Assessee challenged the order of CIT(A) confirming addition of ₹1,19,92,350/- relating to purchase of immovable property.
Assessee had not filed return for AY 2018-19. Based on information from Insight Portal, AO noticed that he purchased land worth ₹1.13 crore on 08.02.2018. Reassessment u/s 148 was initiated. In reply, Assessee explained that his father had sold multiple lands for ₹5.03 crore, & out of such sale proceeds, he purchased the property. He produced copies of sale deeds & bank statements of joint account (with father) showing deposits.
However, AO doubted genuineness, holding that Assessee failed to categorically provide bank statements showing receipt of sale consideration, & added the entire amount of ₹1.19 crore as unexplained. CIT(A) upheld the addition.
Before Tribunal, Assessee produced complete sale deeds, English translations, & bank account details confirming deposits in joint account. ITAT observed that AO had ignored these evidences & made addition without proper verification. Since sale proceeds were duly supported by documentary evidence, the addition was unjustified.
