Anita Bafna Vs ITO (ITAT, Jodhpur Bench)
Relevant facts
In Anita Bafna v. ITO, the Jodhpur Bench of the Income Tax Appellate Tribunal considered whether an alleged unexplained investment could be taxed u/s 69 in AY 2019–20 merely because the property conveyance was registered during FY 2018–19, although the disputed payments had actually been made in FY 2017–18.
The assessee acquired an immovable property for an agreed consideration of ₹1.55 crore, as against its stamp-duty value of ₹1,59,27,000. She had earlier entered into a registered agreement dated 31 December 2011 with M/s Sai Leela Corporation for purchasing Flat No. 402 in Sunita Building. Since the builder failed to construct & deliver the flat, the amounts previously paid by the assessee were allegedly refunded. The refunded money was thereafter utilised for acquiring another property, namely Flat No. 302-B, through an agreement ultimately executed on 28 March 2019.
The assessee produced the earlier agreement, bank account, passbook & payment schedule to explain the movement of funds.
Assessment proceedings
During reassessment, the AO examined the source of payments made towards the new property. Out of the total consideration, the assessee had paid ₹84,22,500 through different cheques. The registered document itself recorded payments of ₹25 lakh on 7 November 2017, another ₹25 lakh on 21 November 2017 & ₹30 lakh on 21 November 2017.
