TaxTMI 
TaxTMI 
2026 (6) TMI 736
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....dicated and allowed on merits, the legal grounds challenging the assumption of jurisdiction are left open and are not being separately adjudicated. 2. The relevant facts borne out from the record are that information was flagged on the Insight Portal under the Risk Management Strategy (RMS) of the CBDT indicating purchase of an immovable property by the assessee for a consideration of Rs. 1,40,00,000/-. The information emanated from the office of the Sub Registrar and was further corroborated by information available through the TDS statement relating to purchase of immovable property. Since the assessee had not originally filed her return of income, proceedings under section 148A were initiated. In response thereto, the assessee explained that the entire investment in the property stood duly explained and that the source of acquisition comprised sale proceeds of her earlier property and financial assistance received from her husband, Mr. Azaz Saudagar, who was residing and working in Dubai. However, the explanation was not accepted and notice under section 148 was issued, pursuant to which the assessee filed her return of income. 3. During the course of assessment proceeding....
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.... of the total consideration Rs. 48,00,000/- represented sale proceeds received from disposal of the assessee's earlier property; Rs. 80,00,000/- was directly paid by her husband, Mr. Azaz Saudagar, to the seller through banking channels; Rs. 20,00,000/- was gifted by the husband to the assessee, out of which Rs. 18,50,000/- was paid to the seller; Rs. 10,000/- was paid through a pay order issued from Jammu and Kashmir Bank; and TDS of Rs. 1,40,000/- was duly accounted for. 5. In support of the aforesaid explanation, the assessee furnished passport and residential identity documents of Mr. Azaz Saudagar, copies of his income tax returns, the seller's bank statement evidencing receipt of two credits aggregating to Rs. 80,00,000/-, the sale deed evidencing receipt of Rs. 48,00,000/- from the earlier property, the registered sale deed relating to the property under consideration, copy of the pay order of Rs. 10,000/-, affidavit of Mr. Azaz Saudagar confirming payment of Rs. 80,00,000/- on behalf of the assessee, Gift Deed executed in favour of the assessee and a bank confirmation identifying Mr. Azaz Saudagar as the remitter. It was specifically argued that once the identity of the ....
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.... entire purchase consideration of Rs. 1,40,00,000/- together with corresponding documentary evidences supporting each component of the payment. The payment chart furnished before us demonstrates that two payments of Rs. 40,00,000/- each aggregating to Rs. 80,00,000/- were made by Mr. Azaz Saudagar directly to the vendor on behalf of the assessee; a further sum of Rs. 40,00,000/- was paid by the assessee out of the sale proceeds received from disposal of her earlier property amounting to Rs. 48,00,000/-; another amount of Rs. 18,50,000/- was paid out of gift funds received from her husband; a sum of Rs. 10,000/- was paid through a pay order issued from Jammu and Kashmir Bank; and tax deducted at source amounting to Rs. 1,40,000/- was duly accounted for. Thus, the assessee has not merely explained the disputed amount of Rs. 80,00,000/- but has explained the entire investment of Rs. 1,40,00,000/- source-wise, payment-wise and document-wise. Every component of the consideration stands identified and linked with supporting documentary evidence. 9. We further find that the assessee has not merely offered an explanation but has supported the same by a complete chain of documentary evid....
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....ucted from the seller, no adverse material has been gathered from the bank and no evidence has been brought on record to suggest that the payments represented the assessee's own unaccounted money routed through any accommodation arrangement. 11. We find that the entire foundation of the addition rests upon the inability of the assessee to produce, after a lapse of nearly ten years, the remittance records of the Dubai Exchange Bureau through which the payments were stated to have been made by her husband directly to the vendor. However, the material placed before us demonstrates that the transaction as a whole stands fully explained and duly corroborated by independent documentary evidence. The payments aggregating to Rs. 80,00,000/- are reflected in the bank account of the vendor and the remitter is described as "Azaz". The affidavit of Mr. Azaz Saudagar and the duly executed Gift Deed further confirm that the said payments were made by him on behalf of the assessee towards acquisition of the residential property. The balance consideration of Rs. 40,00,000/- stands explained from the sale proceeds of the assessee's earlier property Rs. 18,50,000/- stands explained from the gift ....