TaxTMI 
TaxTMI 
2017 (10) TMI 1015
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....ation charges of Rs. 2,88,910/-. The assessee was asked to give explanation on this issue. The assessee submitted that there is no sale/purchase of property during the year. However, copy of transfer of the property as a gift was filed alongwith affidavit. The Assessing Officer observed that a Vasiyatnama (Will) dated 25/10/2004 was in favour of Shri Rambir Singh, who is son of brother of the executant of the Will Shri Deep Chand. It was observed that this Will was executed in respect of the property located at Nandrampurbas, Tehsil- Rewari and it was not related to the property, which was registered in the name of assessee. The Assessing Officer held that the property was purchased by Smt. Kanta Devi, W/o- Shri Rambir Singh. The Assessing Officer did not accept the assessee's explanation that this was a gift of immovable property to the assessee by brother of father in law. It was also submitted that there was no sale consideration paid for this property. It was a gift and due to mistake it was registered as sale deed. 3. The ld. CIT(A) has also confirmed the action of by the Assessing Officer by holding as under: "5.5.2 I have considered the above mentioned facts and the conte....
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....in the present case is whether in the facts and circumstances of the present case, it can be inferred that the assessee has paid consideration to Sh. Deepchand as mentioned in the sale deed dt. 25.02.2011 through which the legal title of the agricultural land owned by him is transferred to the assessee. The fact that no consideration is paid by the assessee to Sh. Deepchand as mentioned in the sale deed can reasonably be inferred from the following circumstances:- (a) It is a fact on record that Sh. Deepchand has no child and he was residing with the assessee and her husband. The ration card (PB 6-7) also proves this fact. (b) Sh. Deepchand in his Will dt. 25.10.2004 (PB 10-13) has stated that Sh. Rambir, husband of the assessee has been residing with him from childhood and was looking after him in his old age. Therefore, in the will, he apart from specifically mentioning about his immovable property at Village Nandrampurbas has also stated that all his movable and immovable properties and deposit in bank/post office anywhere in India after his death would devolve on Sh. Rambir. Therefore, the objection of the AO that land at Village Thada has no role to play in the will is i....
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.... even if the source of investment in land is not found to be satisfactory explained, no addition can be made in the peculiar facts of the case. The Supreme Court in case of Sumati Dayal Vs. CIT (1995) 214 ITR 0801 has held that surrounding circumstances and the test of human probabilities should be considered/ applied in assessing the income. This principal is again approved by the Supreme Court in case of CIT vs. Smt. P.K. Noorjahan (1999) 237 ITR 0570. In this case, assessee was a Muslim lady aged 20 years. She made certain investments in land. The explanation of assessee regarding the source of the purchase money for these investments was that the same were financed from out of the savings from the income of the properties which were left by her mother's first husband. The said explanation offered by the assessee was rejected and addition was made u/s 69. The Tribunal, however, held that even though the explanation about the nature and sources of the purchase money was not satisfactory but in the facts and circumstances of the case it was not possible for the assessee to earn the amount invested in the properties and that by no stretch of imagination could the assessee be credit....
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....ibunal has held that the discretion had not been properly exercised by the ITO and the AAC in taking into account the circumstances in which the assessee was placed and the Tribunal has found that the sources of investments could not be treated as income of the assessee. The High Court has agreed with the said view of the Tribunal. We also do not find any error in the said finding recorded by the Tribunal. There is thus no merit in these appeals and the same are accordingly dismissed. " In view of above, considering the overall facts and circumstances of the case, it cannot be presumed that assessee has made any investment in the purchase of land and therefore, the addition confirmed by Ld. CIT(A) be directed to be deleted. 5. On the other hand, the ld Sr. DR has relied on the orders of the authorities below. 6. We have heard both the sides on this issue. The following facts are undisputed: The assessee was an uneducated lady, residing at village Thada, Tehsil, Tijara, Alwar. Assessee's husband Shri Rambir Singh was working in Central Reserve Police Force (CRPF) as Head Constable. Shri Deep Chand was brother of assessee's father in law. Deep Chand was unmarried and having ....