TaxTMI 
TaxTMI 
2025 (1) TMI 285
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....drai Patel (in ITA No. 1093/Ahd/2023) and the Department (in ITA No. 93/Ahd/2024 against the order passed by Ld. CIT(A) for A.Y. 2016-17 dated 07.11.2023. We shall first take up the appeal of the assessee in ITA No. 1092/Ahd/2023 in the case of Late Smt. Ramilaben Harshadrai Patel (through Legal Heir Devraj Harshadrai Patel) 2. The Assessee has taken the following grounds of appeal:- "1. The learned CIT(A) NFAC has erred in law and on facts in upholding addition of long term capital gain at Rs. 40 Lakhs without allowing deduction for Index cost and exemption u/s. 54B in as much as that as per assessee taxable capital gain was NIL and without appreciating the facts and circumstances of the appellant. 2. He has erred in law and on facts in upholding addition of Rs. 38,50,000 u/s. 68 and holding that assessee failed to discharge onus to prove cash credit in as much as that the full details explaining cash credit have been furnished but not considered and the assessee has discharged the onus cast on her. 3. The learned CIT(A) has grievously erred in law and on facts in not considering the detailed submission furnished by the assessee on 30.01.2020 to th....
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....espite ample opportunities of more than 2 years being given to the appellant since first hearing notice was issued by NFAC to the appellant on 08/01/2021. In such circumstances, addition of Rs. 40,00,000/- (Rs.17,14,550 + 22,85,450) on sale of immovable property as LTCG made by the AO is found correct and thus, ground 3 is dismissed." 5. Before us, the Counsel for the assessee submitted that there were five co-owners in such property, with each co-owner having 20% share. One of the co-owners having 20% share was the son of the assessee, Shri Devraj Harshadrai Patel, in whose case similar addition of Rs. 40 lakh was made by the Assessing Officer with respect to his 1/5th share in the above property. However, on identical set of facts, Ld. CIT(A) deleted the addition vide order dated 07.11.2023, based on the remand report called by Ld. CIT(A). Further, Ld. Counsel for the assessee submitted that the Department has also not challenged this addition, as is evident from the grounds of appeal raised by the Department against the order passed by Ld. CIT(A) in ITA No. 93/Ahd/2024 i.e. in the case of co-owner of this property. Accordingly, the Counsel for the assessee submitted that this....
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....ng to Rs. 38,50,000/- and hence the creditworthiness of these persons has not been proved by the assessee. 11. Before us, with respect to loan taken by the assessee from his son, Shri Devraj Harshadrai Patel, the assessee produced before us return of income of Shri Devraj Harshadrai Patel, copy of confirmation and also extracts of the passbook of Shri Devraj Harshadrai Patel showing withdrawal of Rs. 13,50,000/- to demonstrate that both the identity as well as creditworthiness of the said lender has been duly established. 12. With regards to loan of Rs. 25,00,000/- taken by the assessee from Reshmaben Vikrambhai Patel, the Counsel for the assessee has furnished extract of the passbook showing withdrawal of Rs. 25,00,000/- by cheque in the name of the assessee, confirmation by Reshmaben Vikrambhai Patel and also submitted proof that the amount taken as loan was repaid by the assessee to Ms. Ramilaben Harshadbhai Patel on 26.04.2016 by account payee cheque. Accordingly, in light of the above facts, the Counsel for the assessee submitted that the assessee has duly discharged the onus by both giving adequate details regarding the identity of the lenders as well as their creditwor....
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.... the assessee's share of investment was Rs. 1,65,86,140/-. During the course of assessment, the assessee submitted that source of above investment was loan taken by assessee from four parties, the details of which are tabulated below for ready reference: Name Address PAN Amount AC Commodities 12, Shanti Sadan Estate, Mirzapur, Ahmedabad AAVFA1543M 40,00,000/- Madhukanta Patel 01, Sauram Tower NR Vasna Bus Stand, Vasna, Ahmedabad AGVPP3687K 35,00,000/- Shilpa M Patel 399, Patel VAS NR Govt. Chora Paldi, Ahmedabad ASBPP3894L 32,90,000/- Vikrambhai M Patel 1, Pates Vas Motikhand, Thaltej, Ahmedabad AKSPP0031E 25,00,000/- Total 1,32,90,000/- 19. During the course of assessment, the Assessing Officer did not accept the creditworthiness of these parties and added a sum of Rs. 1,32,90,000/- as unexplained investment in the hands of the assessee. 20. In proceedings before Ld. CIT(A), the Ld. CIT(A) called for a remand report from the Assessing Officer and on the basis of remand report furnished by the Assessing Officer and additional details furnished by the assessee during the appellate proceedings....
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....0/- has been duly accounted for in the bank statement of the assessee (reproduced at Page 54 of the Paper Book). Accordingly, in light of the facts and supporting documents produced before us, we are of the considered view that the assessee has been able to duly explain the source of investment in the aforesaid property and accordingly, we are of the view that the balance investment of Rs. 32.96 lakhs has been that explained by the assessee. Accordingly, we are of the considered view the addition of Rs. 32.96 lakhs is not liable to be sustained as unexplained investment in the hands of the assessee under Section 69 of the Act since the assessee has duly explained source of investment in purchase of immovable property, as having been sourced out of sale of immovable property, during the impugned year under consideration. 24. In the result, the appeal of the assessee is allowed. Now we shall come to Department's appeal in ITA No. 93/Ahd/2024 25. The Department has raised the following grounds of appeal: "(a) The Ld. CIT(A) has erred in law and on facts in deleting the addition of Rs. 1,32,90,000/- made by AO on the account of unexplained sundry creditors. (....