Javadsha Hasmukhray Varaiya Vs ITO (ITAT Mumbai)
Flat Agreement Signed in One Year, Payments Made Over Eight Years: ITAT Deletes ₹28.28 Lakh Addition and Orders Limited Verification; Joint Ownership Alone Cannot Attribute Wife’s Property Investment to Husband: ITAT Mumbai
The Entire Flat Price Was Added in One Year
The assessee had jointly agreed with his wife, Smt. Kavita Varaiya, to purchase a flat from Runwal Developers Pvt. Ltd. The agreement was dated 24 December 2009 and recorded total consideration of ₹47,81,250.
The assessee had not filed a return for Assessment Year 2010–11. Acting on information available through the Non-Filer Monitoring System/AIR, the Assessing Officer initiated reassessment. As there was no effective compliance with the notices, he completed an ex parte assessment under sections 144 read with 147 and treated the entire agreement value of ₹47,81,250 as unexplained investment under section 69.
Before the Commissioner (Appeals), the assessee explained that the flat had been purchased jointly, that its price was paid in instalments over several financial years, and that some payments came from his wife’s bank accounts. The Commissioner (Appeals) called for a remand report but ultimately confirmed the full addition, holding that the respective contributions of the joint owners had not been conclusively established.
