2022 (3) TMI 425

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....of Income Tax Circle 72(1), on account of Rental Income amounting Rs. 3,73,800/- earned by the Spouse of the Assessee, in the hands of the Assessee, U/s 64 of the Income Tax Act, 1961. 2. The Ld. CIT(A), misconstrued the fact and law and confirming the imposition of provisions of clubbing and disallowing the rent paid to spouse by the Assessee, as his investment/funding towards the purchase of the Property and further, clubbing Rental Income earned from that Property with the Income of the Assessee U/s 64 of the I. T. Act, 1961. 3. The Ld. CIT (A) has, further failed to appreciate facts that the Part of Financial Loan assistance stands returned by the Spouse to the Assessee on 02.08.2013 Rs. 7,50,000/- and 19.07.2015 Rs. 5....

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....d held that the Spouse of the Assessee did not had the substantial taxable income to justify her source of income from purchase of the property. 8. That the CIT(A) also erred in law to consider and observe that the Assessee is the second holder in various investments made in name of the Spouse and thereby deemed to consider that the investments where made by the Assessee." 3. The assessment in this case has been completed u/s 143(3) of the Act on 03.03.2016 at taxable income of Rs. 66,88,240/- inter alia making an addition of Rs. 3,73,800/-. On perusal of assessment order, it is observed that assessee claimed to have paid rent to his wife Mrs. Shivani Mittal during the period September 2012 to March 2013 totaling to a sum of Rs.....

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....o not found to be acceptable. While confirming, the ld. CIT(A) relied on the income summary statement of Smt. Shivani Mittal, for the assessment year 2001-02 and 2003-04 wherein she has shown income from profession of Rs. 57,400/- and Rs. 1,48,900/- respectively. The ld. CIT(A) further relied on the total taxable income shown in the ITR fi led from the assessment year 2001-02 till A.Y 2012-13 which is as under:- Assessment Year  Income Returned (In Rs.) 2001-02 86,946/- 2002-03 1,05.950/- 2003-04 1,48,900/- 2004-05 Nil 2005-06 1,44,855/- 2006-07 3,36,580/- 2007-08 1,72,663/- 2008-09 2,16,961/- 2009-10 1,68,547/- 2010-11 2,90,000/- 2011-12 1,52,356/- 2012-13 3....