TaxTMI 
TaxTMI 
TaxTMI 
2024 (7) TMI 903
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....sis that her income was below the exemption limit. She had purchased an immovable property at Thottipalayam Village, Tiruppur, for the sale consideration of about Rs. 1.56 crore under a sale deed dated 12.07.2018 bearing document No.3029/2018. Upon coming to know of such transaction, a notice under Section 148 A (b) of the Income Tax Act, 1961 (the Income Tax Act), was issued to the petitioner. On considering the petitioner's reply, an order dated 30.03.2023 under Section 148A(d) thereof was issued. This was followed by notices under Section 142(1) and 143(2) of the Income Tax Act. The petitioner replied on 30.01.2024. Being dissatisfied with such reply, a show cause notice on 17.02.2024 was issued calling upon the petitioner to show ca....
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....ion is not satisfactory so as to enable her to file detailed submissions. Similarly, in response to the show cause notice, he pointed out that the Axis bank statements were uploaded and the payment list was provided with regard to payment of stamp duty charges by the petitioner. 5. As regards the second issue relating to the alleged failure to declare the market value of the property and pay taxes thereon, learned counsel contended that stamp duty is liable to be paid on the guideline value and that it was paid on such basis. By referring to the reply to the show cause notice, he pointed out that the petitioner stated that she was unable to object to the fixation of stamp duty by reckoning the value at Rs. 1,83,12,000/- due to family and o....
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....e ledger accounts from her husband's books of account along with the relevant balance sheet. In effect, he submits that the assessee failed to provide the information called for in spite of being provided multiple opportunities to do so. Therefore, he contends that the impugned order contains no infirmity with regard to the addition of a sum of Rs. 1,56,96,000/. As regards the second issue of the addition of Rs. 26,16,000/-, he submits that stamp duty was computed by the registering authority by reckoning the market value of Rs. 1,83,12,000/-. Therefore, he submits that the assessment order contains no infirmity. 7. Based on the rival submissions, the first issue to be considered is whether the conclusion with regard to the addition of....
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....ment receives information that such person is the owner of unexplained money or other article, such assessee would be called upon to provide an explanation and the same consequences would follow if the assessee does not reply or if the reply of the assessee is not satisfactory. This is evident from the use of the expression "books of account, if any", in Section 69A. If any other interpretation is placed on this provision, any assessee not required to file books of account would get away scot-free when such assessee is found to have unaccounted money. 8. In response to the notice under Section 148A(b), the assessee stated that the source of funds for the purchase of the immovable property was from her husband. This was taken note of in the....
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....e numbered on the bank statements as reference numbers 1, 6, 8 and 9 and that such payments were made directly to the vendor. It should be noticed, however, that the petitioner did not submit the return of income of her husband or the ledger account, if any, relating to the purchase of this property. 10. Learned counsel for the petitioner submitted that such documents were not called for by the Income Tax Department. This submission is not entirely satisfactory because it was incumbent on the petitioner to not only establish the source of funds, but also to show that the sum of Rs. 1,56,96,000/- was duly reported by her husband in his return of income and that applicable tax thereon had been paid. 11. Nonetheless, the petitioner has place....
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....e Rs. 50,000/- and 10% thresholds specified in Sections 56(2)(x)(b)(B)(i) and (ii). For the above reason and by taking into account the fact that the provisions are substantially similar and the petitioner had sufficient opportunity to show cause in respect of the proposed addition, I conclude that the mentioning of a different provision in the show cause notice does not vitiate the order in this respect. 13. The next contention of learned counsel for the petitioner on this issue was that stamp duty is leviable on the guideline value. Stamp duty is imposed on conveyances under Article 23 of the Schedule to the Indian Stamp Act, 1899, as applicable in Tamil Nadu. As per Article 23, stamp duty is payable on the instrument of conveyance at a ....