Cash Payment for Joint Flat Bought with Wife Explained through Bank Records: ITAT Deletes ₹5.25 Lakh Income Tax Addition [Read Order]

The Income Tax Appellate Tribunal (“ITAT”) deleted income tax addition of ₹5.25 Lakh for purchasing a flat with his wife (jointly) after reviewing bank records. The tribunal observed that the cash payment was made via bank from a salaried account and was well-explained.

The assessee filed a return of income from salary and other sources. The Assessing Officer (A.O.) found that the assessee has given INR 10,50,000 /- in cash for booking his flat. A.O. makes an addition of INR 5,25,000 /-, applying Section 69 of the Income Tax Act (“the Act”).

The appellant/assesee, Utpalkumar, is a salaried person and does not maintain regular books of accounts. He had presented the paper book and corresponding bank statement.

It has been submitted that details along with ownership of the said flat along with his wife who had jointly purchased that in consideration of INR 60,00,000/-. These details are from HDFC Bank totalling to INR 9,92,500/- from April 2012 to March 2013. The appellant contended that cash payment was also from accounted sources, which has been verified from the bank account.

The Department relied upon the assessment order and the order of the CIT(A).

The bench, comprising Dr. B. R. R. Kumar (Vice-President) and Suchita Kamble (Judicial) find merits in their arguments. Consequently, the appeal has been allowed.

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