Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2017 (11) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (11) TMI 1223 - HC - Income TaxProperty transactions in USA - addition u/s 69 - loan of US Dollar 6,59,000/- given to one Mr. Vijay Kumar Kataria, who had executed the power of attorney in favour of the assessee’s Son-in-law Sh. Mohit Mehra - protective assessment addition - Held that:- In the final charge sheet filed by the CBI there is no mention about the property transactions in USA. The charge sheet is only about booking air tickets for the appellant and his family members by some of the contractors. The CBI court in its decision passed on 26.03.2013 had stated that the appellant was not found guilty of even on this charge. Since, the assessment order was based on the FIR filed by the CBI and as the CBI itself had not found any material to pursue the matter regarding the property transaction in USA against the appellant in the charge sheet, the addition of ₹ 2,86,86,270/- is sustainable as the addition was not made on the basis of any evidence. Even on the basis of the FIR the addition can be made at best on the son in law only, who is a permanent resident of USA and assessed to tax in USA, and not on the appellant. Moreover, the appellant’s AR during the appellate proceedings had informed that the same property in USA was added in the hands of Shri Vijay Kumar Kataria, the actual purchaser of the property in USA by DCIT Central Circle-11 in his order u/s 153A passed on 27.03.2009. Since the addition of ₹ 2,86,86,270/- made by the AO in hand of the appellant is not a protective assessment and the department cannot tax the same property twice on the appellant and on the actual purchaser of property. Therefore, it is of the view that the addition made by the AO as the value of property in USA is not sustainable - Decided against revenue
|