Anil Dhansukhlal Vs ITO (Int.Txn) (ITAT Rajkot)
ITAT Rajkot held that addition on account of unexplained investment in purchase of immovable property u/s 69 of the Income Tax Act is liable to be deleted since assessee sufficiently proved that all the payments are made from wife’s NRI account.
Facts- Assessee is an individual and has not filed return of income. Based on information, it was observed that the appellant assessee had made considerable transactions for purchase of property of Rs.2,97,63,459/- at Mumbai, having tax and revenue implications, however, the appellant did not disclose the said transactions by filing return of income.
Thus, AO issued the draft assessment order dated 24.03.2023 u/s 144C of the Act by making an addition of Rs.2,97,63,459/-, on account of unexplained investment in purchase of immovable property u/s 69 of the Act. DRP uphold the action of the assessing officer in proposing the adjustment of Rs.2,97,63,459/- on account of unexplained investment in purchase of immovable property u/s 69 of the Act. Being aggrieved, the present appeal is filed.
Conclusion- Held that all the payments were made from the account of assessee`s wife as it is a joint property purchased in the name of the assessee and his wife. The assessee has produced the bank statement of Chentna Chandrakant Mehta and that being an NRI account, and the credits appearing in the bank account has also been properly explained by the assessee. Despite of this, the assessing officer did not accept the explanation of the assessee.
