TaxTMI 
TaxTMI 
2025 (6) TMI 402
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....She filed her return for AY 2011-12 declaring total income of Rs. 1,08,000/-, on 11.07.2011. The assessee was assessed under Section 144 read with Section 147 of the Act by the Ld. AO. The assessment was made on the basis of third-party information from the ITD system regarding purchase of property and time deposits, resulting in an assessed income of Rs. 51,62,311/-. The Ld. AO passed an ex-parte assessment order dated 29.11.2018 under Section 144 read with Section 147 of the Act, making additions of Rs. 51,62,311/- on account of alleged undisclosed investments in property and bank deposits. The Ld. AR argued that the impugned assessment order passed by Ld. AO against the principle of natural justice as it can be clearly observed that various notices were not served on the assessee and later on, when a show cause notice dated 22.11.2018 was received by her husband, he replied vide letter dated 12.12.2018 along with all the supporting documents clearly mentioning that no notices were received by the assessee except the notice dated 22.11.2018 but later on, the assessment order dated 29.11.2018 was received by her husband on 22.12.2018. Aggrieved by the assessment order dated 29.11.....
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....t the Ld. AO failed to make the proper enquiry and just made an addition based on: (i) Assessee has registered an immoveable property on 21.07.2010 stamp duty valuation of which is Rs. 35,27,088/- and Agreement Value is Rs. 16,83,000/-. Differential amount is 18,44,088/-; (ii) The payment of Rs. 16,83,000/- made towards the purchase of above property are made through Saraswat Co-operative Bank Ltd. The payment was made on 04.08.2009 vide cheque number "46403" which can be clearly observed from bank statement of Saraswat Co-operative Bank Ltd, copy of which is enclosed in APB page no. 11-16 and also in bank book page no. 5 -10 of the APB. 4. The ld. AR argued that from the letter of provisional registration which also mentions the consideration amount to Rs. 16,83,000/- and details of the cheque issued to purchase the property on page 21 of the APB where on 4th page of the provisional registration document the builder confirmed that he had received a payment of Rs. 16,83,000/- vide cheque number 046403 dated 01.08.2009. The Ld.AR accordingly submitted that from the above it can clearly observe that property was purchased in AY 2009-10 and not in AY 2011-12 as th....
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....value and the actual sale consideration was made liable for addition as "Income from other sources". The Ld. DR has contended that this amendment was clarificatory in nature and, therefore, it should be made applicable for this preceding year, as well. It is found from the Memorandum explaining the provision in Finance Act, 2013 that the amendment to Section 56(2)(vii)(b) of the Act was not clarificatory in nature. The said memorandum reads as under: "The existing provisions of sub clause (b) of clause (vii) of sub-section (2) of section 56 of the Income-tax Act, inter alia, provide that where any immovable property is received by an individual or HUF without consideration, the stamp duty value of which exceeds fifty thousand rupees, the stamp duty value of such property would be charged to tax in the hands of the individual or HUF as income from other sources.The existing provision does not cover a situation where the immovable property has been received by an individual or HUF for inadequate consideration. It is proposed to amend the provisions of clause (vii) of sub-section (2) of section 56 so as to provide that where any immovable property is received for a considerat....
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.... 5. In view of non-compliance from the assessee, as briefed above, the undersigned could not verify the time deposit in bank to the tune of Rs. 16,35,223/-. In the absence of details to verify the issue of source of income, I have no option but to treat the said amount of Rs. 16,35,223/- as assessee's undisclosed income from undisclosed sources." 8. We have heard the rival submissions and examined the documents available on record. It is observed that the Ld. AO incorrectly assumed that the assessee had not filed the ITR for the relevant assessment year. However, upon perusal of the documents, we find that the assessee had indeed filed the ITR, a copy of which is annexed at page 1 of the APB. The said return was duly filed on 11/07/2011.We further note that the assessee had sufficient sources of funds for making the payment towards the purchase of the flat. This payment is reflected in the bank account maintained with Saraswat Co-operative Bank Ltd., bearing Account No. 146200100004957, as evidenced on pages 11 and 16 of the APB. The Ld. AR specifically stated that the said amount was deposited by liquidating fixed deposits. The funds were deposited on three occasions - Rs.....