Renu Jagdishwar Sood Vs ITO (ITAT Ahmedabad)
Unexplained Property Investment Case: Addition Deleted When Co-Owner (Husband) Made Payments; Ex-Parte Assessment Challenged: Authorities Must Verify Evident Facts in Unexplained Investment Cases; Section 69 Addition Fails: Investment Not in Relevant Year & Paid by Co-Owner’s Husband
AO reopened assessment based on information from the Sub-Registrar’s Office that Assessee had purchased property worth ₹51.92 lakh, allegedly representing unexplained investment u/s 69. Assessee did not attend proceedings, leading to an ex-parte assessment & addition of the entire amount. CIT(A)/NFAC upheld the addition ex-parte as well.
Before ITAT, Assessee argued that the property was jointly purchased with her husband, payments were made entirely by him in the preceding year through bank cheques, & the sale deed itself reflected co-ownership & payment details. Copies of her husband’s bank statement & sale deed were furnished before CIT(A).
ITAT observed that AO already had the sale deed on record, which showed that the investment was not made in the impugned year & that the husband had funded the purchase. The authorities, even in ex-parte proceedings, were bound to verify these evident facts instead of mechanically making the addition.
Accordingly, Tribunal directed deletion of the entire addition of ₹51,92,550 made u/s 69.
