The Chandigarh bench of the Income Tax Appellate Tribunal (ITAT) has deleted an addition made by the income tax department towards the cash purchase of the property using funds pooled by the family members.
The assessee, Shri Gurmeet Kaur Khurana had invested an amount of Rs.6 lacs for immovable property with M/s Bajwa Developers Ltd. The investment was made vide cash payments. The transaction was flagged. The income tax department noticed that no tax return was filed by the assessee. Accordingly, proceedings were initiated against the assessee.
Before the authorities, the assessee claimed that the investment has been made after withdrawing the funds in cash from the respective bank accounts of these family members.
Smt. Diva Singh (JM) observed that “the deposit of Rs.6 lacs made by the assessee from the sources of funds stand fully addressed. Copies of the statement of the bank accounts of the assessee are at pages 1 & 2 from 01.04.2011 to 02.12.2011 of Account No.55080023582 in SBI; at page 3 copy of assessee’s husband’s Account No.10883085576, Branch Code : 628 is available from 01.04.2011 to 06.04.2011 and at page 4 copy of Account No.55062933389 of Shri Kanwaldeep Singh (son of the assessee) evidencing withdrawals from State Bank of India account for the specific period i.e. 04.04.2011to06.04.2011 are seen. On a consideration thereof, I find no good reason let alone a reason why the explanation offered duly supported by facts should not have been accepted. Satisfied by the evidence on record of the First Appellate Authority also relied upon before the ITAT setting aside the order, the addition sustained is directed to be deleted. Said order was pronounced in the Open Court at the time of hearing itself.”
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