Ravinder Singh Brar Vs ITO (ITAT Amritsar)
Who Paid the Builder? -Original Allottee vs Assessee- ITAT Sends 69A Addition Back for Verification
Assessee filed return declaring income of ₹13.64 lakhs. The case was reopened u/s 147 based on information that a residential plot was purchased from M/s Bajwa Developers Ltd. & cash payments of ₹1,65,636 were allegedly made during the year. Since there was no response to notices, AO treated ₹1,65,636 as unexplained investment u/s 69A & completed assessment u/s 143(3) r.w.s 147.
Before CIT(A), Assessee challenged reopening & also denied making any cash payment to Bajwa Developers. He submitted that the original allottee of the plot was one Mr. Vikas Sharma, who had paid all amounts to Bajwa Developers in FY 2011-12, & Assessee only purchased the plot from Vikas Sharma in April 2012. However, no supporting documents or relinquishment agreement between Vikas Sharma & Assessee were furnished. CIT(A) upheld the addition.
Assessee filed appeal before Tribunal with a delay of 226 days, explaining that he had undergone brain surgery earlier & due to continuous ill health & memory issues, delay occurred. The medical documents were examined. Tribunal found the delay was due to reasonable cause & condoned it.
