Kshama Sanjay Tripathi Vs ITO (ITAT Ahmedabad)
In the case of Kshama Sanjay Tripathi Vs ITO, the ITAT Ahmedabad ruled on the appeal concerning unexplained investment in property for the Assessment Year 2010-11. The assessee, identified as a non-filer, faced an addition of ₹40,00,000 for property purchase and ₹17,58,500 for cash deposits in her bank account. The Assessing Officer (AO) completed the assessment under Section 144 of the Income Tax Act, considering the investments as unexplained. The Commissioner of Income Tax (Appeals) [CIT(A)] later deleted the cash deposit addition but enhanced the assessment by ₹2,10,000, citing unexplained expenditure, without issuing a notice of enhancement.
Aggrieved, the assessee appealed to the Tribunal, asserting that the ₹40,00,000 investment was sourced from her family members, including her brother, husband, father, and father-in-law, all of whom transferred funds to her through documented transactions. The Tribunal reviewed the bank statements provided and found that the primary onus of proving the sources was met. Since no adverse inference could be drawn against the assessee, the Tribunal allowed the appeal on the unexplained investment addition. Additionally, the Tribunal found no justification for the ₹2,10,000 enhancement by the CIT(A), as no proper notice was given for the increase. Therefore, the Tribunal ruled in favor of the assessee, setting aside both the investment addition and unexplained expenditure enhancement.
