Sureshkumar Kasturram Purohit Vs ITO (ITAT Ahmedabad)
NRI Property Investment – Additions U/s 69 Deleted After DRP Relief – Cash Deposit & Stamp Duty Explained with Bank Evidence – ITAT Ahmedabad
The assessee, a US-based NRI, faced reassessment relating to investment in a residential flat, where additions were proposed u/s 69 for unexplained investment. While DRP granted substantial relief by accepting documentary evidence for most payments, it sustained addition of ₹5.32 lakh relating to cash deposit, stamp duty and registration charges.
Before ITAT, the assessee produced bank statements showing cash withdrawal from NRE account and evidence that stamp duty and registration charges formed part of payments made to the developer. Accepting the explanation and additional documents including affidavit from builder, the Tribunal held that sources were satisfactorily explained and directed deletion of entire remaining additions. Appeal allowed.
FULL TEXT OF THE ORDER OF ITAT AHMEDABAD
This appeal is filed by the Assessee as against the final assessment order dated 19-12-2024 passed under section 143[3] rws 144C[13] of the Income Tax Act, 1961 [hereinafter referred as ‘the Act’] by the Assistant Commissioner of Income Tax relating to the Assessment Year 2016-17.
2. Brief facts of the case is that the assessee is non-resident residing in USA since April 2002 and is citizen of USA. The assessee booked a residential flat at Kandawali West, Mumbai in the Year 2011 for a consideration of Rs.79,90,500/- from M/s. Versatile Properties Pvt. Ltd., Mumbai. Agreement for the same was executed on 20-07-2015, payments for booking of said flat was made during the period from 2011 to 2018. Payments were made by the assessee through his NRE/NRO account with HDFC Bank and also by his own brother Mr. Jitesh Kumar Purohit, who is also an NRI. Since the assessee has not filed he Return of Income, the assessment was reopened by issuing a notice u/s. 148 dated 23- 03-2023.
