Opportunity to furnish unsecured-loan confirmations is required before reassessment initiation; proceedings require fresh consideration after taxpayer...
Under-reporting on a first reassessment return attracts penalty, while enhanced misreporting penalty requires proof of a statutory misreporting catego...
ITAT allowed the appeal and directed deletion of the impugned addition. The Tribunal held that unaccounted pre-purchase payment ("on-money") discovered on search should be assessed in the hands of co-owners pro rata according to their proprietary interests, and not wholly in one assessee's hands. The AO erred in treating the entire amount as taxable to the assessee when records and seized purchase agreements established joint ownership and the assessee admitted a 40% share. The assessee had declared and offered payment exceeding eighty percent of the on-money; absent rebuttal of co-ownership, any residual addition should have been apportioned among co-owners, hence deletion was warranted.
ITAT allowed the appeal and directed deletion of the impugned addition. The Tribunal held that unaccounted pre-purchase payment ("on-money") discovered on search should be assessed in the hands of co-owners pro rata according to their proprietary interests, and not wholly in one assessee's hands. The AO erred in treating the entire amount as taxable to the assessee when records and seized purchase agreements established joint ownership and the assessee admitted a 40% share. The assessee had declared and offered payment exceeding eighty percent of the on-money; absent rebuttal of co-ownership, any residual addition should have been apportioned among co-owners, hence deletion was warranted.
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
TaxTMI 
of 4915 
