The Chennai bench of the Income Tax Appellate Tribunal (ITAT) ruled that the addition as unexplained investment in difference in value on the purchase of property without considering co-owner is not valid.
The assessee, Mr R Vasimalai an individual and carrying on the profession as a LIC agent. The assessee has filed its return of income for the AY 2014-15 on 29.11.2014 declaring total income at Rs.4,75,310/-. The assessee had purchased property along with co-owner, Mr C.R.Rajaram, for consideration of Rs.36 lakhs and the guideline value of the property as per the stamp duty authorities was at Rs.68,03,167/-.
The AO has taken the difference between the guideline value of the property and consideration paid for the purchase of property and made an addition u/s.56(2)(vii)(b)(ii) of the Act, Rs.34,01,584/- as an unexplained investment. The CIT(A) has sustained the additions made by the AO.
It was observed by the Tribunal that similar addition has been made in the hands of the co-owner, Mr C.R.Rajaram, and an appeal filed by the co-owner was pending before the CIT(A). The Tribunal observed that the appeals filed by both the assessees need to be decided simultaneously, because, the decision taken in one case may have bearing on the other appeal filed by the co-owner.
Shri Mahavir Singh, Vice President and Shri G Manjunath, Accountant Member set aside the appeal filed by the assessee to the file of the CIT(A) and directed the CIT(A) to decide both the appeals simultaneously. The appeal filed by the assessee was allowed for statistical purposes.
The Appellant was represented by Mr.N. Arjunraj & Mr S Sridhar and the respondent was represented by Mr Hema Bhupal.
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