ITO Vs Usha Rani (ITAT Delhi)
Tribunal Protects Woman Assessee: No Burden to Prove Creditworthiness of Husband & Sons: Property Investment by Senior Citizen- AO’s Addition Quashed – Family Contributions for Property Accepted as Genuine- ITAT Delhi Deletes Rs.1.10 Cr Addition
Revenue appealed against order of CIT(A) deleting addition of Rs.1,10,25,000/- made u/s 69 on account of unexplained investment in property.
AO reopened assessment based on AIR information that Usha Rani, a senior citizen, purchased property for Rs.1,05,00,000/- (her share) plus Rs.5,25,000/- stamp duty. AO held that she had explained only Rs.52,70,000/- through her bank account & claimed balance Rs.52,30,000/- was paid by her husband, an agriculturist with no ITR, whose creditworthiness was not proved. AO also doubted funds given by her two sons (Rs.29.14 lakh & Rs.20.30 lakh) citing mismatch with their ITRs. Consequently, AO treated entire Rs.1.10 crore as unexplained investment.
On appeal, CIT(A) noted that Usha Rani had filed bank statements, confirmations & ITRs of her sons, as well as husband’s bank statement & Form-J for agricultural sales. It was held that she had discharged her onus by proving that money came from family members. The law does not require Assessee to prove “source of source” in hands of relatives. Therefore, addition was deleted.
