Miteshkumar Dhanjibhai Patel Vs ITO (ITAT Ahmedabad)
The ITAT Ahmedabad has granted Miteshkumar Dhanjibhai Patel a second chance to prove the source of a ₹50 lakh property purchase. The tax authorities had initially added the entire amount to his income for the 2011-12 assessment year as an unexplained investment, as he had not filed a return of income or explained the source of the funds during the assessment proceedings. His initial appeal to the CIT(A) was also dismissed.
However, during his appeal to the ITAT, the taxpayer presented new evidence. His legal representative argued that out of the total purchase price, the taxpayer’s wife, Shilaben Miteshkumar Patel, had paid ₹49 lakh and he had paid only ₹1 lakh. The representative further explained that his wife had received the ₹49 lakh from her father, Shri Nagarbhai Shankarbhai Patel. The taxpayer also submitted a confirmation letter from his father-in-law and a copy of his income tax return for the relevant year, which showed an income of ₹52.28 lakh.
The ITAT found that the CIT(A) had improperly rejected these new pieces of evidence without seeking a remand report from the Assessing Officer. In the interest of justice, the tribunal set aside the previous order and sent the case back to the Assessing Officer. The officer is now directed to re-examine the additional evidence and readjudicate the matter.
