2020 (11) TMI 598 - ITAT DELHI - Income Tax

Head Note / Extract:
Unexplained investment - income earned from the source not disclosed to the Department - no plausible explanation is filed to explain the source of investment made in purchase of immovable property amounting to ₹ 25 lakhs being her half share in the property + registration expenses - HELD THAT:- Sale deed as explained above and the receipt executed later on, on behalf of the mortgagee would clearly show that the agricultural land purchased by the assessee was for a consideration of ₹ 50 lakhs, however, at the time of execution of the sale deed, ₹ 30 lakhs was paid by assessee and other co-owner. The remaining consideration of ₹ 20 lakhs was to be paid by assessee and the co-owner to the mortgagee for redeeming the mortgage agricultural land under consideration. The amount of ₹ 20 lakhs is paid to the mortgagee on 20.11.2012. Thus the assessee and the co-owner have paid ₹ 30 lakhs only in assessment year under appeal. The share of the assessee comes to ₹ 15 lakhs only and if the stamp charges are also added, it would make a total of ₹ 15,67,500/- which is below the amount of ₹ 18 lakhs accepted as source of income from agricultural activity by the A.O. for the purpose of making the above investment. Thus, there were no justification by the A.O. to make any addition against the assessee. In view of the above, we set aside the Orders of the authorities below and delete the addition of ₹ 7,67,500/-. - Decided in favour of assessee.