TaxTMI 
TaxTMI 
2026 (9) TMI 1960
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.... the Act vide notice dated 15.03.2023. 2.1 In response to the said notice the assessee filed his return of income declaring to Rs. 7,08,770/-. As noted above the assessee had purchased unit shop no. O402 at Prateek Wisteria, Sector 77 and the AO noted the following details of sources submitted by the assessee for the investment in respect of the said property: "Payment details are as under Period Type of Payment Payment by Amount Remarks Oct 2015 RTGS Ashish Bhatt 6,80,000 Self Fund Nov 2015 RTGS Axis Bank 32,00,000 Loan Nov 2015 Binatee (Wife of Ashish) 12,35,330 Self Fund TDS 51,670 Total 51,67,000 2.2 The assessee submitted the details of source of the said property and the AO accepted the source of Rs. 40,80,000/- out of the total investment of Rs. 51,67,000/- and added the balance amount of Rs. 10,87,000/- u/s 69 of the Act. The AO accepted only a sum of Rs. 2,00,000/- out of the past savings of Smt. Binatee wife of the assessee (out of a claim of Rs. 12,35,330/-). In this regard, the relevant extracts of the order of the AO ....
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..... Further, from perusal of details submitted by the appellant during the appellate proceeding in form of additional evidences, the admission of which have been allowed. But the same is being discussed to give the clear picture of the case. The appellant has submitted that an amount of Rs. 12,00,000/- has been gifted by his mother-in-law Kamla Chuggani to his wife Binatee Bhatt, and his wife has advanced the same to him, and corresponding bank statements of all the persons have been submitted. The said facts can be clearly seen appreciated. But, however, it is seen that his mother-in- law, has in turn received several credits in a short duration, and finally an amount of Rs. 12,00,000/- has been transferred to Binatee Bhatt's account. It is seen that Kamla Chuggani is having minimal amount in her bank prior to the above transactions, and the ITR being filed by her is being kept at total income with minimal tax paid in form of SA tax. Hence, the very nature of immediate credits prior to transfer of amount raises serious doubt about the source and creditworthiness of the lender/payer. The appellant has initially stated before the AO that the sum advanced by his wife perta....
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....." 5. At the time of hearing, the Ld. AR in respect of the above findings of the Ld. CIT(A) submitted as under: "It is respectfully submitted that the said amount formed part of the contribution made by the appellant's wife towards the purchase of the property. The appellant had consistently explained that the amount contributed by his wife was sourced from a gift received from her mother, Mrs Kamla Chhugani, along with her own past savings. During the appellate proceedings, the appellant also furnished additional evidence, including the bank statements of the appellant's wife and her mother, as well as the gift declaration confirming the transfer of funds. The learned CIT(A) himself admitted these evidences under Rule 46A, acknowledging that they were relevant to the issue under consideration. From the documents placed on record, the identity of the donor, Mrs Kamla Chhugani, was clearly established. The transaction was carried out through banking channels, and the movement of funds was reflected in the respective bank statements. Thus, the genuineness of the transaction and the source of the funds were duly explained. It is further submitted that the ....
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....is reproduced as under: "TO WHOSOEVER IT MAY CONCER This is to certify and confirm that I, Kamla Ramesh Chhugani (PAN No ACOPC9344B), resident of C1-904, M I Rustle Court, Sector-6, Gomti Nagar Lucknow-226010 am the mother of Mrs Binatee Bhatt (PAN No AINPC1860F) wife of Ashish Bhatt (PAN No. AMRPB1889M) and I had gifted Rs 12,00,000/- (Twelve Lakhs only) to my daughter Mrs Binatee Bhatt in her ICICI Bank saving account no 629401531128 vide RTGS no ORBCR52015102000056356 dated 20/10/2015 from my Oriental Bank of Commerce saving account no 05512191037529. The purpose of the gift was to financially assist my daughter and son in law in purchase of a residential flat at Noida. I further confirm that I am regular filer of Income Tax return and have pension and investment income as my source of income. I had given this amount after liquidating some of my investments in the form of FDR with Oriental Bank of Commerce." 5.2 Further, the Ld. AR also referring to page no. 68 of the paper book stated that the source of Rs. 12,00,000/- was the closure proceeds of various FDR by Smt. Kamla Ramesh Chhugani which he stated that it was evident from the bank statement o....
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....ovide the details of the source of the above purchases and accordingly added the same u/s 69 of the Act. The same was confirmed by the Ld. CIT (A) and the relevant finding of the Ld. CIT (A) are reproduced as under: "8.4.2 Appellant's Submission: "The appellant had made investments in Mutual funds in the form of SIP of Rs 2000 per month with IDFC Mutual Fund scheme IDFC Flexi Cap Fund-Growth- (Regular Plan) from Aug 2015 and another SIP of Rs 1000/- per month with ICICI Prudential Mutual Fund from Aug 2015. This investment has been considered as unexplained investment u/s 69 by the AU. A copy of the mutual fund statement is attached herewith. It was explained vide reply dated 13th Feb, 2024 that the appellant had been employed since year 2007 and the investment of Rs 24840/- is out of past saving and current year salary income of the appellant. Also, the amount of investment is very small considering the salary income of the appellant. However, the AU ignored the reply of the appellant and instead made addition of Rs 24,840/- as unexplained investment u/s 69 of the Act.". 8.4.3 Decision:. I note that the appellant has given a vague reply to substantia....
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....y on assumptions without any adverse material on record. A copy of the bank statements of Ashish Bhatt and Yashvi Bhatt and the statement of mutual fund are attached as Annexure L. Accordingly, the addition of 24,840/- sustained by the learned CIT(A) is unjustified and deserves to be deleted." 12. On the other hand, the Sr. DR supported the order the authorities below. 13. We have heard both the parties and perused the material available on record. On perusal of the bank statement of Yashvi Bhatt U/G Ashish Bhatt with Axis Bank (placed at page no. 136 to 139 of the paper book) it is seen that the above investment is duly debited in the said bank account. However, we also notice that prior to the above investment there are cash deposits of Rs. 13,000/- and Rs. 10,000/- on 19.06.2015 and 01.07.2015 but we also notice that there was credit entries received through clearing instruments. Considering the very nominal investment varying between 1,000/- to maximum of 3,000 on 14 different dates between 03.08.2015 to 15.03.2016, the explanation of the assessee is acceptable. Therefore, the addition of Rs. 24,840/- is deleted. Ground no. 4 is allowed the appeal of the....