Suman Devi Vs ITO (ITAT Patna)
Investment Year Matters- Registration Date Irrelevant for Source of Funds- Property Investment Taxable in Year of Payment, Not Year of Registration- ITAT Patna
Assessee along with five co-purchasers acquired an immovable property for a total consideration of ₹2.10 crore. Stamp duty of ₹18.33 lakh & registration charges of ₹4.61 lakh were also paid. Assessee made full payments during FY 2012-13 (AY 2013-14), with the last payment being on 10.03.2013. However, registration of the property was completed on 04.04.2013, which fell in AY 2014-15.
AO, during AY 2014-15 assessment, treated Assessee’s share of ₹35 lakh & ₹38.82 lakh as unexplained investment, along with a difference between stamp duty valuation & actual payment of ₹3.17 lakh. CIT(A) upheld the addition on the basis that the transaction was completed only in AY 2014-15 upon registration.
Before Tribunal, Assessee argued that source of purchase consideration was duly explained & payments were made in AY 2013-14. Merely because registration happened in April 2013, no addition could be made in AY 2014-15. It was further contended that Sec.2(47) relied upon by Revenue deals with transfer for capital gains computation & had no application in a case of purchase.
Department contended that Assessee failed to substantiate the source before AO & CIT(A).
