Bhavin V. Maniar Vs ITO (ITAT Ahmedabad)
In the case of Bhavin V. Maniar Vs ITO, the Income Tax Appellate Tribunal (ITAT) in Ahmedabad partially upheld the addition of Rs. 79.35 lakh under Section 69 of the Income Tax Act, treating it as an unexplained investment. The case revolves around a property purchase in Ahmedabad’s Satellite Area during the 2018 assessment year. The taxpayer claimed that Rs. 49.55 lakh was funded through an HDFC Bank loan, while the remaining funds came from his own sources and contributions from his father. The tribunal reviewed the records, including a 285-page paper book provided by the taxpayer, which contained transaction details, bank statements, and the loan sanction letter. While ITAT accepted most of the taxpayer’s explanations, it upheld the need for additional documentation concerning Rs. 10 lakh that was reportedly received from the taxpayer’s father, who passed away in 2016.
The ITAT ruled that the taxpayer must furnish evidence regarding the Rs. 10 lakh from his father to the Assessing Officer (AO) within three months. The tribunal directed the AO to verify the additional documents and conduct further inquiries if necessary. The tribunal found that most of the taxpayer’s funds were sufficiently explained based on documentation provided, but incomplete records for a portion of the funds required further examination. Therefore, ITAT partially allowed the taxpayer’s appeal, granting him time to submit the necessary records to support the claim fully.
