Rajender Raghuvanshi Vs Income Tax Officer (ITAT, Delhi Bench)
AO CANNOT DOUBT A LOAN & TAX THE PROPERTY-ONCE PRIMARY EVIDENCE IS FILED, FURTHER ENQUIRY MUST FOLLOW u/s 68/69
The Delhi ITAT has held that once an assessee furnishes confirmations, PAN details, ITRs & bank statements of the lenders, thereby discharging the primary onus regarding their identity, creditworthiness & genuineness of transactions, the AO cannot summarily reject the explanation. If still dissatisfied, the AO must conduct further enquiries. The addition of ₹43,80,750 representing the assessee’s share in the purchase price of a property was accordingly deleted.
Facts of the case
The assessee, Rajender Raghuvanshi, filed his return of income for AY 2019-20 on 30.10.2019 declaring a total income of ₹10,07,810.
During the relevant year, the assessee jointly purchased an immovable property with his wife for a total consideration of ₹87,61,500. The assessee’s 50% share in the purchase consideration amounted to ₹43,80,750.
The assessment was reopened u/s 148 by notice dated 28.03.2023 on the ground that the assessee had purchased the immovable property during the year & the source of investment required verification.
In the reassessment proceedings, the AO noticed that the assessee had obtained unsecured loans from M/s Padamshree Industries & Shri Prem Goyal. These funds were utilised, among other sources, for purchasing the property.
