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2018 (11) TMI 630 - ITAT DELHIInvestment in property - Charge of income-tax - Year of assessment - investments in property made by the assessee in earlier years or in respect of deposits in bank accounts of the assessee made in earlier year which brought forward to this year - Held that:- On perusal of Section 4(1) of I.T. Act, it is obvious that in the year under consideration, no addition can be made in respect of investments in property made by the assessee in earlier years or in respect of deposits in bank accounts of the assessee made in earlier year which brought forward to this year for making cheque payments of the aforesaid total amount of ₹ 6,05,100/-. Moreover, in any case, when certain amounts were invested by the assessee and also, certain other amounts were deposited in the bank account of the assessee, in previous years relevant to earlier A.Ys.; such investments or deposits could not possibly have been out of the income of the previous year under consideration (relevant to A.Y. 2009-10). It is well settled that each year is separate and self-contained period. Income Tax is annual in its structure and organization. Firstly, in computation of assessee’s total income for the year under consideration, we direct the AO to delete the additions in respect of those amounts which were invested by the Assessee in earlier years i.e. before previous year 2008-09 relevant for A.Y. 2009-10. AO is directed to quantify this amount while giving effect to this order. Secondly, we also direct the AO to delete the addition amounting to ₹ 6,05,000/- which was made by the assessee during the year under consideration through cheque transactions of the assessee in her bank accounts in Allahabad Bank and Punjab National Bank; because, as stated earlier, it is not disputed that the assessee had sufficient deposits in her bank account at the beginning of the year to explain the source of aforesaid transactions by cheque. Thirdly, as far as investment totaling aforesaid amount of ₹ 6,53,100/- in cash is concerned, we restore the matter to the file of the AO with the direction to pass a fresh order on merits on this limited issue after considering the explanation of the assessee. At this stage we are expressing no opinion on merits of the explanation tendered by the assessee. AO will decide the issue on this limited point in accordance with law and facts of the case. This order is limited in its application to A.Y. 2009-10, which is the year under consideration for this appeal filed by assessee. Undisputedly, the investment in property has been made by the assessee partly in this year and partly in other years. Undisputedly deposits in the bank accounts of the assessee include deposits made in earlier years. Our observations, directions and order are applicable only for this particular appeal filed by assessee for A.Y. 2009-10. As no other appeal for any year is before us; we decline to express any opinion for any other year.
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