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of <h1>Tribunal upholds Income Tax Act treatment, dismisses appeal on rental income disallowance. Order pronounced June 8, 2022.</h1> <h3>Smt. Geetha Sekar Versus The Income Tax Officer, Non Corporate Ward 13 (4), Chennai</h3> Smt. Geetha Sekar Versus The Income Tax Officer, Non Corporate Ward 13 (4), Chennai - TMI Issues involved:1. Treatment of unexplained investment under section 69 of the Income Tax Act.2. Disallowance of accumulated rental income.Analysis:Issue 1: Treatment of unexplained investment under section 69 of the Income Tax ActThe case involved an appeal against the order of the Commissioner of Income Tax (Appeals) regarding the treatment of an investment made by the assessee in a property. The Assessing Officer noted a sale deed registered in the name of the assessee, with the vendor being her husband, for a consideration of &8377;75,00,000. The assessee claimed no payment was made, stating it was a transfer from her husband out of love and affection. However, the Assessing Officer treated the purchase consideration as unexplained investment under section 69 of the Act. The CIT(A) upheld this decision, emphasizing that the sale deed clearly mentioned the consideration, and the claim of no payment was unproved. The Tribunal found no fault in the CIT(A)'s order, dismissing the appeal.Issue 2: Disallowance of accumulated rental incomeAnother ground of appeal related to the disallowance of &8377;1,98,000 of accumulated rental income. The Assessing Officer disallowed this amount, considering that a businessman would not keep the rent received idle. The CIT(A) affirmed this disallowance. The Tribunal concurred with the decisions of the lower authorities, finding no error in disallowing the accumulated rental income. Consequently, the appeal filed by the assessee was dismissed, upholding the orders of the authorities below.In conclusion, the Tribunal upheld the treatment of the unexplained investment under section 69 of the Income Tax Act and the disallowance of accumulated rental income. The appeal was dismissed, and the order was pronounced on the 8th of June, 2022 in Chennai.
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