TaxTMI 
TaxTMI 
2025 (8) TMI 1511
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....ater stage. 3. In ground no. 4, the assessee has contested the addition made of Rs. 1,06,56,120/- u/s. 69 of the Act. Briefly stated, the facts are, the assessee is a non-resident Indian. The Assessing Officer (AO), while verifying the insight portal of the department noticed that in the Financial Year ('F.Y.'. for short) 2015-16, relevant to assessment year under dispute, the assessee, though, had made various financial transactions, however, no return of income was filed by the assessee u/s. 139(1) of the Act. Therefore, having reason to believe that income assessable to tax has escaped assessment, the A.O. initiated proceedings u/s. 147 of the Act, by issuing a notice u/s. 148 of the Act, calling upon the assessee to furnish his return of income. However, as alleged by the A.O., in response to notice issued u/s. 148 of the Act, the assessee did not file any return of income. Subsequently, the assessee furnished a reply before the A.O., stating that he being a resident of United States of America ('USA'), has no source of income in India. It was submitted, he was sending money through NRE savings accounts for maintenance and investments in India. From the information available....
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....r, in course of proceedings before ld. DRP, the assessee had furnished various additional evidences to establish source of investment in properties purchased from MHADA and Neptune Developers. After examining the documentary evidences furnished by the assessee, the A.O. has furnished a remand report dated 06.11.2024. With regard to property purchased from MHADA, the comments of the A.O. in the remand report are as under: Comments: Submission made by the assessee is perused and duly considered vis-a-vis documentary evidences viz. copy of bank statement of the assessee evidencing remittance in earlier years, copy of Citibank- NRE bank account statement, SBI NRE Bank account statement of the assessee, copy of bank account statement of SVC bank of his parent in which assessee is also joint holder, copy of bank account statement of Abhyudaya Co-Op Bank, copy of Axis Bank account statement of brother of the assessee, Mr. Umesh Kalyankar, copy demand draft issued in the name of MHADA for purchase of flat etc. As claimed by the assessee, that payments to purchase the MHADA property was financed from Shamrao Vitthal Co-op Bank and Abhyudaya Co-op Bank, the evidenc....
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.... the money for payment to Neptune Builders was transferred to SVC Bank from Abhyudaya Co-operative (by withdrawing FDs) or from SBI-NRE Account on need basis. The summary of receipts and payments provided by assessee is reproduced below: Comments: Submission made by the assessee is perused and duly considered vis-a-vis documentary evidences viz. copy of bank statement of the assessee evidencing remittance in earlier years, copy of Citibank- NRE bank account statement, SBI NRE Bank account statement of the assessee, copy of bank account statement of SVC bank of his parent in which assessee is also joint holder, copy of bank account statement of Abhyudaya Co-Op Bank and booking receipt of Neptune flat. Following documents submitted by the assessee have been: a) Remittance by assessee to his brother from Citibank NRE Account is verified from Citibank NRE Statement. The name of the brother is reflected in Citibank account. b) Remittance from brother to SVC is verified from SVC Bank statement. The remittance from Citibank NRE to brother of the assessee is evident from the statement of Citibank NRE statement in the year of 2009. The a....
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....o Neptune Developers. He has further observed that examination of bank accounts and other evidences clearly established the source of investment. Thus, the aforesaid observations of the A.O. in the remand report leave no room for doubt that the assessee has explained the source of investment in respect of both the immovable properties through cogent evidences. In this context, it may further be stated that the flat from MHADA, which is a Government Agency, was purchased through a lottery scheme in the year 2013 for a consideration of Rs. 75,22,625/-. When the source of investment has been explained through documentary evidences and the A.O. has also examined them and has not found anything adverse, in our considered opinion, ld. DRP was not justified in sustaining a part of the addition made in the draft assessment order. In view of the aforesaid, we are inclined to delete the addition of Rs. 1,06,56,120/-. This ground is allowed. 10. In ground no. 5, the assessee has contested the addition of Rs. 46,54,986/- u/s. 56(2)(vii)(b) of the Act, on account of difference between the declared sale consideration and the value determined by Stamp Valuation Authority. As discussed elsewher....
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.... mode other than cash on or before the date of the agreement for the transfer of immovable property. The relevant extract is reproduced below: "Provided that where the date of the agreement fixing the amount of consideration for the transfer of immovable property and the date of registration are not the same, the stamp duty value on the date of the agreement may be taken for the purposes of this sub-clause: Provided further that the said proviso shall apply only in a case where the amount of consideration referred to therein, or a part thereof, has been paid by any mode other than cash on or before the date of the agreement for the transfer of such immovable property." Thus, it was evident that the applicant fulfils both the conditions as mentioned in proviso to section 56(2)(vii) (b) of the Act. As mentioned in the above submission, the applicant had paid booking amount of Rs. 51,000/- on 17.11.2010 vide cheque no. 400967. Additionally, the booking form deciding the flat number and its allotment was decided and payments were made accordingly. A copy of the booking form is enclosed at page 95 of the paper book submitted has been perused. Accordingly, the ....
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.... Date Amount Date Amount Date Amount Date Amount 1 Opening Balance as on 20 January 2009 12,72,027 Citi Bank- NRE Statement [Page i to 4) 2 20-01-2009 2,50,000 3 27-01-2009 2,20,000 4 29-01-2009 4,82,796 25-02-2009 4,93,204 E 17-03-2009 5,08,232 7 18-03-2009 5,00,000 B 30-03-2009 5,04,355 9 06-04-2009 4,94,316 10 11-04-2009 5,00,000 11 17-04-2009 5,00,000 12 18-04-2009 5,00,000 13 13-07-2009 4,87,317 14 03-10-2009 3,00,000 15 03-10-2009 2,00,000 16 Total Amount deposited by applicant in Citi Bank - NRE as per statement 29,70,220 17 Total Amount received by brothers 29,70,000 18 22-12-2010 20,00,000 SVC Bank Statement (Page 6 to 12) 19 29-12-2010 9,50,000 20 Amount transferred to SVC by brothers 29,50,000 21 Opening Balance and interest thereon transferred to SVC Bank and account balance reduced to almost NIL 03-12-2010 5,00,000 Citi Bank - NRE Statement Inaze 1 to 22 03-12-2010 5,00,000 23 16-03-2011 3,65,035 24 Total Sum Remitted to SVC Bank upto 29 December 2010 as per above (partly converted to FD no. 143/142 and partly paid to 43,15,035 25 Payment to Builder 03-....