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Smt. S. Aruna Versus Income-tax Officer, Ward – 6 (4) , Bengaluru

2015 (11) TMI 481 - ITAT BANGALORE

Investment in immovable property - Held that:- the issue requires a fresh look by the AO. Documents produced by the assessee before the CIT (A) appears have been not readily available with the AO. In so far as unexplained deposit in Karnataka Bank is concerned, assessee’s argument is that it came out of the sale of a property acquired by her in 2007. In the submission made by the assessee before the CIT (A), assessee itself had requested the CIT (A) to call for a remand report from the AO with r .....

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hat this issue also requires a fresh look by the AO.

Addition being the closing balance with UCO Bank - argument of the assessee is that this money was received by her from BBMP for contract work. As per the assessee that debtors’ account were over stated - Held that:- A close verification of this claim is required to see whether the actual billing for the work done by her for BBMP during the previous year included the bills on which payments were received and credited in UCO Bank acc .....

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C IT (A)-II, Bengaluru. 02. Facts apropos are that assessee engaged in garden contract business had filed her return for the impugned assessment year declaring income of ₹ 17,14,510/-. AO had AIR information regarding purchase of an immovable property for ₹ 70,75,000/- by the assessee. On verification of the records, AO found that the above investment was jointly made by assessee along with her husband Shri. L. Srinivas. AO was of the opinion that assessee s share in the investment .....

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O verified the assessment record of L. Srinivas and reached an opinion that the sum of ₹ 70,75,000/- received by him on sale of agricultural land was used by him for acquiring fixed assets. As per the AO, there was nothing left with L. Srinivas to give anything to the assessee. He therefore chose to disbelieve assessee s contention that she had received any gift from her husband. One more reason adduced by the AO for disbelieving assessee s version was absence of a gift deed. He held the s .....

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balance sheet filed by the assessee. There was a deposit of ₹ 15 lakhs in the Karnataka Bank account on 22.05.2008. In the account with UCO Bank, there was a closing balance of ₹ 30,99,000/-. It seems assessee failed to give any explanation for the source of these. He thus made an addition of ₹ 15 lakhs for deposit in Karnataka Bank account and ₹ 30,99,000/- for the closing balance in the UCO Bank account. 04. Aggrieved by the above additions assessee moved in appeal bef .....

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ontributed by her comprised of three payments of ₹ 9 lakhs, ₹ 3,78,645/- and ₹ 3,33,948/-. Deposits in Karnataka Bank account from where the cheques were issued, as per the assessee, came out of sale proceeds of another property. Though assessee admitted that gain / loss from the sale of property was not returned or computed by the AO, as per the assessee, it constituted a good source for explaining the deposits in the bank account and purchase of the property. Reliance was pla .....

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relevant previous year for a sum of ₹ 25 lakhs and the sum of ₹ 15 lakhs which was deposited in Karnataka Bank came out of the sale proceeds. Assessee also furnished before the CIT (A), sale deed in support of these contentions. 06. In so far as the addition for the closing balance in UCO Bank was concerned, submission of the assessee before the CIT (A) was that it represented proceeds from sundry debtors. As per the assessee, the account with UCO Bank was started in the last month o .....

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e submissions and arguments of the assessee held that in so far as the investment in immovable property was concerned, assessee could show through evidence that her husband had sufficient balance in his bank account for the sum of ₹ 66,60,000/- paid by him. Further according to the CIT (A) assessee could also show that source for the funds in her bank account with M/s. Karnataka Bank from where the cheques issued by her stood explained. He therefore deleted the addition of ₹ 41,41,71 .....

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ar as addition of ₹ 30,99,000/- of the closing balance in UCO Bank was concerned, CIT (A) was of the opinion that assessee could show the sums to have been received from BBMP against work bills raised by it. He therefore held the balance as explained. Addition of ₹ 30,99,000/- was deleted. 10. Now before us, assessee is aggrieved on the confirmation of the addition of ₹ 15 lakhs for the deposit in Karnataka Bank. As against this, Revenue in its appeal is aggrieved that CIT (A) .....

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rce of cheques issued by her. According to Ld. DR, sale deeds for sale of property to M/s. Vanitha Family Trust and sale of property to Shri. M. Jayagopal Gowda, which were produced by the assessee before the CIT (A) for explaining the source of deposits and cheques issued therefrom were never produced before the AO. CIT (A) had accepted the evidence furnished by the assessee and gave relief to her violating Rule 46A of IT Rules. In so far as deletion of addition for unexplained closing balance .....

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might be true that the property was not reflected in the balance sheet . However when its sale was evidenced by a conveyance deed, source for the deposits in the bank accounts could not be denied. Taxability of surplus or deficit arising from the sale of the property, as per the Ld. AR was a different matter altogether. Further as per the Ld. AR, balance sheet of the assessee had over stated the debtors balance. The receipts of the assessee from BBMP were only based on the work-bills raised by t .....

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far as the first issue of investment in immovable property is concerned, at para 3.5 of his order, CIT (A) mentions that assessee had produced copies of the bank account of her husband, copies of the sale deeds of the property to M/s. Vanitha Family Trust and M. Jayagopal Gowda, as evidence for source of L. Srinivas. No doubt it is true that AO had verified the assessment records relating to L. Srinivas. However, the AO has also given a specific finding that source of funds available with L. Sri .....

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