Swapnal Subhash Anbhavane Vs ITO (ITAT Mumbai)
56(2)(vii)(b) Addition Deleted: ITAT Mumbai Quashes Reopening & Holds Joint Owner (Housewife) Not Taxable Where Entire Consideration Paid by Spouse
The Mumbai ITAT (SMC Bench) allowed the assessee’s appeal for AY 2017-18 and deleted the addition of ₹47.74 lakh made under Section 56(2)(vii)(b) on account of alleged undervaluation of a residential flat. The Tribunal held that the assessee, a homemaker and joint owner, had not contributed any consideration, which was entirely paid by her husband; merely being a joint name-holder does not attract taxation in her hands. The Tribunal relied on detailed bank reconciliations evidencing payments by the husband, the fact that identical reassessment proceedings against the husband were dropped u/s 148A(d) after verification, and the Bombay High Court ruling in Kalpita Arun Lanjekar holding that reopening against a non-contributing joint holder is untenable.
On jurisdiction, the ITAT admitted additional legal grounds and quashed the reopening for want of proper sanction under Section 151, holding that approval by the Principal Chief Commissioner was invalid for the facts/time-bar involved. Consequently, both on merits (no taxable income under Section 56(2)(vii)(b)) and on law (invalid reassessment), the addition was deleted and the appeal was allowed in full.
FULL TEXT OF THE ORDER OF ITAT MUMBAI
