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2021 (12) TMI 871 - AT - Income TaxRevision u/s 263 by CIT - source of cash deposited into the bank account of the assessee - agreement to sell was entered into by the assessee with Shri Sunil Khasa for sale of 20% share in the house, whereas as per the records submitted by the assessee, the house in question was transferred in the name of the assessee - assessee was not the owner of the above-said property at the time of execution of agreement to sell. He further observed that in the agreement to sell, the property was mentioned as a plot but actually it was a duplex house. He, therefore, observed that there was clearly lack of inquiries by the AO - HELD THAT:- CIT had proceeded on the wrong footing that the assessee had deposited the amount of ₹ 19 lacs in the account and further that the assessee had entered into an agreement to sell for 20% share in the house with Shri Sunil Khasa, whereas, the case of the assessee from the very beginning has been that the amount of ₹ 19 lacs was not deposited by her in the joint bank account, rather the amount in question was deposited by the other/second account holder i.e. her husband, namely Shri Surender Singh Taxak. When the assessee had explained that the account was a joint account and the amount was deposited by the second account holder, then in our view, the AO should have dropped the proceeding against the assessee and issued notice to the second account holder, i.e. the husband of the assessee - AO continued with the proceedings, wherein the assessee duly explained the source of cash deposited even by the second account holder. Whatever may be the shortcomings/discrepancies relating to the agreement to sell 20% portion of the house, that could have been taken into consideration in the assessment proceedings in the case of the second account holder i.e. the husband of the assessee. Once the assessee had explained that she has not deposited any amount in the joint account and further the second account holder had in clear term admitted that the amount was deposited by him, the assessee, in our view, was absolved of her liability to further explain about the transaction. However, the Ld. Pr. CIT proceeded on wrong footing that the aforesaid explanation relating to the agreement to sell 20% share in the house pertain to the assessee. Even it was explained that the father of the husband of the assessee was paralytic and was not in good health and, therefore, the agreement to sell was executed by the husband of the assessee i.e. the second account holder. The compulsion for execution of agreement to sell was also explained as installment was due of ₹ 17.25 lacs towards the Noida Authority/Developer and that the husband of the assessee was in dire need of money for which he obtained ₹ 19 lacs from his friend Shri Sunil Khasa and in lieu of that, he executed agreement to sell of 20% share of the house. The father-in-law of the assessee expired after some time and thereafter the house in fact, was transferred in the name of the husband of the assessee on 01.04.2015. The above facts show that the AO had duly made appropriate inquiries and even recorded the statement of Shri Sunil Khasa, who admitted that he had given ₹ 19 lacs to the husband of the assessee. In view of the above discussion, it is held that the Ld. Pr. CIT wrongly exercised his revision jurisdiction u/s. 263 of the Act. The impugned order passed by the Ld. Pr. CIT u/s. 263 of the Act being bad in law, is not sustainable and the same is accordingly, quashed - Decided in favour of assessee.
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