Smt. Neha Jain Vs ITO (ITAT Hyderabad)
The appeal before the Income Tax Appellate Tribunal Hyderabad concerned reassessment proceedings for Assessment Year 2016–17 and an addition sustained on the basis of an alleged Joint Development Agreement (JDA). The assessee had filed her return declaring income of ₹3,05,700. The case was reopened under section 147 on the premise that capital gains arising from a JDA valued at ₹1,76,00,000 had not been offered to tax. The Assessing Officer completed reassessment under sections 147 read with 144B and made an addition of ₹1,76,00,000 under section 69A.
On appeal, the Commissioner (Appeals) noted that the document relied upon by the Assessing Officer for the higher amount related to the assessee’s husband. Another document, with a value of ₹1,53,45,000, was considered to pertain to the assessee, and the addition was reduced accordingly. The assessee challenged the sustenance of this reduced addition before the Tribunal.
The assessee contended that she had never entered into any JDA and that the reopening itself was based on an incorrect assumption. It was submitted that the documents relied upon were General Power of Attorney (GPA) documents, executed by the actual owners of the property, authorising the assessee to act on their behalf. The assessee argued that a GPA does not transfer ownership or development rights, does not constitute a JDA, and cannot give rise to capital gains, particularly when the assessee was not the owner of the property.
