Smt. Kajari Banerjee Vs ITO (ITAT Kolkata)
ITAT Kolkata held that provisions of section 56(2)(x) of the Income Tax Act were inserted by Finance Act, 2017 and effective only from 01.04.2017. Thus, provisions of section 56(2)(x) is not applicable when flat is brought prior to 01.04.2017.
Facts- The case of the assessee was selected for complete scrutiny and statutory notices were duly issued and served upon the assessee. AO during the course of assessment proceedings observed that assessee has purchased property at Purba Jadabpur, Corporation Kolkata, in respect of which the verification unit reported that assessee has purchased this property. AO noted that as per the said report the market value of the said property was ₹63,78,336/-, whereas the purchase price was ₹19 lacs. AO further noted as per the information available in departmental portal, circle rate value of the property was 59,24,736/-. The lower authorities thereafter observed that assessee has not admitted that she has purchased the said property and did not disclose the correct facts and therefore, the source of the investment of ₹19 lacs in the property remained unexplained. Accordingly, the addition made u/s 69 of the Act to the income of the assessee.
CIT(A) dismissed the appeal. Being aggrieved, the present appeal is filed.
