The New Delhi Bench of Income Tax Appellate Tribunal ( ITAT ) deleted the addition made by the assessing officer under section 69A of the Income Tax Act, 1961. The decision followed as the AO accepted the purchase and sale documents and no evidence to prove otherwise.
Vinay Chandra, the assessee had a source of income from house property, Long-term Capital Gain, and Income from other sources. The assessee filed his income tax return of Rs. 25,03,760 as total income after claiming the deduction of Rs. 3,21,177 under Chapter VI-A.
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The assessee assessment was selected for limited scrutiny. The AO issued a notice under section 143(2). In response, the assessee complied with all the notices. The AO completed the assessment under section 143(3) by making the addition of Rs.2,90,00,000.
Aggrieved by the AO assessment, the assessee appealed before the Commissioner of Income Tax (Appeals). The CIT(A) observed that AO had accepted the sale of the property and the subsequent purchase of the new property based on the deeds provided by the assessee. The Commissioner of Income Tax (Appeals) found merit in the contention of the assessee.
The CIT(A) held that the addition made by the AO was not justified as the AO failed to establish that the amount was from undisclosed sources. Therefore, the CIT(A) deleted the addition. Aggrieved by the CIT(A) order, the assessing officer appealed before the ITAT, New Delhi.
The two-member bench comprising B.R.R. Kumar (Accountant Member) and Sudhir Kumar (Judicial Member) heard the revenue arguments and none appeared on behalf of the assessee. The tribunal observed the CIT(A) remand report in which it mentioned that the assessee had filed the sale deed of the purchase of new property on 25-07-2017 and the payment was made during the Financial Year of 2017-18.
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The tribunal noted that the assessee had disclosed the income in the income tax return filing and the AO had accepted the same. The tribunal found no reason to interfere as the Commissioner of Income Tax (Appeals) rightly deleted the addition made by the assessing officer. Thus, the appeal of the revenue was dismissed.
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