TaxTMI 
TaxTMI 
2026 (9) TMI 971
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....urchased an immovable property for a total consideration of Rs. 2,00,91,780/-. During the course of reassessment proceedings initiated under section 147, the Assessing Officer called upon the assessee to explain the source of investment made in the said property. The assessee had explained before the Assessing Officer that she was married to one Mr. Simon Todd, a British citizen and marine engineer employed abroad, and the entire investment in the residential property had been made out of foreign remittances received from her husband through proper banking channels into her NRE account maintained with HSBC Bank. It was also specifically submitted that the payments towards the property had commenced from the year 2012 onwards and the investment substantially pertained to earlier years. However, according to the Assessing Officer, though the assessee had orally explained the source during video conferencing proceedings conducted on 28.03.2022, the documentary evidences were not uploaded within the limited time granted till 3:00 PM on 29.03.2022, and therefore, the explanation was not accepted. The Assessing Officer accordingly proceeded to treat the entire investment of Rs. 2,00,91,7....
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.... 25,00,205.00 31/01/2014 38,74,126 29/10/2013 24,31,385.00 05/11/2014 15,00,000 14/03/2014 99,101.60 07/01/2015 20,00,000 17/10/2014 19,14,706.00 02/07/2015 4,00,000 18/12/2014 23,62,012.80 16/02/2017 8,04,000 17/02/2017 8,10,000 Total 2,83,19,543.70 Total 2,07,24,154 5. The assessee has also submitted a copy of Agreement for Sale signed on 29th February 2012, a copy of letter dated 02nd July 2015 issued by the developer M/s Highland Construction Pvt Ltd handing over the possession of the house property, a copy of Sale Deed dated 17th February 2017, e-challan highlighting payments of Stamps and Registration fees of Rs. 8,04,380/- paid through a cheque number 757994 drawn on State Bank of India dated 22nd February 2017 and the copies of receipt vouchers acknowledging the payments made by the assessee towards the purchase of property issued by the developer from time to time which are summarized in the following table:- Date Particulars Amount 16-01-2012 Paid through Ch No. 083018 dtd 14.01.2012 HSBC Bank 10,30,457 01-03-2012 Paid through Ch No. 083019 dtd 29.....
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....ni dated 29.02.2012 10. Submission dated 29.03.2022 to show cause notice dated 23-03-2022 11. Person of Indian Origin Card of Mr Simon John William Todd, husband of the Assessee 12. Ledger Account of Assessee in the books of M/s. Highland Constructions for the period 2012 to 2017 13. Stamp Duty paid receipt dated 22.02.2017 14. Receipt Voucher from Highland Constructions Pvt Ltd 15. Copy of receipt received from Citizen Credit co-op Bank Ltd for creating Stamp duty demand draft for property registration 16. Possession letter dated 02.07.2015 and acceptance of the possession letter dated 02.07.2015 17. Office of the civil registrar cum sub registrar, Taluka Regsitration Department, Government of Goa Input form for Registration of a documents 18. HSBC Bank statement account number 030-466106-006 19. Submission dated 20.10.2024 before CIT (Appeals)" 7. The learned CIT(A), after examining the aforesaid evidences, came to a categorical conclusion that the nature and source of investment in the property stood fully explained. The learned CIT(A) further observed that the Assessing Officer had made....
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....so pertinent to observe that the evidences placed on record establish a clear and direct nexus between the remittances received from abroad and the payments made to the developer. The confirmations issued by Barclays Bank, London, the HSBC bank account statements and the payment receipts issued by the builder collectively establish the complete money trail. Once the assessee had duly demonstrated the source of funds and the movement of money through identifiable banking channels, there remained no basis whatsoever for invoking section 69 merely because the assessee's independent returned income was comparatively low. The Assessing Officer has completely overlooked the settled legal position that the source of investment has to be examined in the context of the explanation and evidences furnished by the assessee and not merely on presumptions arising from returned income figures. 11. What further demolishes the case of the Revenue is that the investment in the property was not made during the relevant previous year alone. The documentary evidences clearly demonstrate that the remittances and payments commenced from the year 2011-12 onwards and continued over a period of several y....