BRIJESH BHATI,GREATER NOIDA V. .ITO WARD 5(1)(3), NOIDA

ITA 3599/DEL/2024

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The case involves Brijesh Bhati, the appellant, who appealed against the order of the Commissioner of Income Tax (Appeals) confirming the additions made by the Assessing Officer under sections 147, 144, and 144B of the Income Tax Act, 1961 for the Assessment Year 2013-14. The additions pertained to a bank home loan finance amounting to Rs.54.50 lakhs and a cash payment of Rs.20.50 lakhs made for the purchase of a house. The Assessing Officer had reopened the case based on information received through the Insight Portal, which indicated high-risk financial transactions. The Tribunal found that the loan amount was properly sourced and explained, leading to the deletion of the addition. Similarly, the cash payment was also accepted as explained by the assessee.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 43604 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-12-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2013-2014
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAJESH MAHAJAN
• Assessee Lawyers: SONALI SHAH
• Keywords: Gift
• Section: 147; 148; 144; 13; 69A

Judgement Text

"I.T.A. No. 3599/Del/2024 1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “A”NEW DELHI BEFORE SHRI MAHAVIR SINGH, VICE PRESIDENT AND SHRI S RIFAUR RAHMAN, ACCOUNTANT MEMBER आ.अ.सं/.I.T.A No.3599/Del/2024 िनधा\tरणवष\t/Assessment Year: 2013-14 Brijesh Bhati 12A02, 13th Floor, Tower Crescent Court-1, Jaypee Green Residential, Rampur Jagir, Gautam Budh Nagar, Greater Noida, Uttar Pradesh. बनाम Vs. ITO, Ward-5(1)(3), Noida, Gautam Budh Nagar, Uttar Pradesh. PAN No. ASTPB9075F अपीलाथ\u0014 Appellant \u0016\u0017यथ\u0014/Respondent िनधा\u0005\u0006रतीक\u000bओरसे /Assessee by Ms. Sonali Shah, Adv. राज\u0010वक\u000bओरसे /Revenue by Shri Rajesh Mahajan, Sr. DR सुनवाईक\u000bतारीख/ Date of hearing: 17.12.2024 उ\u0016ोषणाक\u000bतारीख/Pronouncement on 17.12.2024 आदेश /O R D E R PER SHRI MAHAVIR SINGH, V.P. This appeal by the Assessee is arising out of the order of Commissioner of Income Tax (Appeals)-NFAC, Delhi in Appeal No. NFAC/2012-13/10127928 dated 11.03.2024.Assessment was framed by Assessing Officer (AO) of National Faceless Appeal Centre (NFAC), Delhi for the AY 2013-14 u/s 147 r.w.s. 144 r.w.s. 144B of the Income Tax Act, 1961 (hereinafter referred to as the “Act”) vide his order dated 25.03.2022. I.T.A. No. 3599/Del/2024 2 2. The only issue in this appeal of the assessee is as regards to the order of the CIT(A) confirming the action of the AO in making addition of bank home loan finance amounting to Rs.54.50 lakhs and cash payment for purchase of house of Rs.20.50 lakhs. 3. Brief facts are that the assessee has not filed any return of income for AY 2013-14 and accordingly assessee’s case was reopened u/s 147 of the Act by issuing notice u/s 148 of the Act on the basis of information received through Insight Portal under High Risk – CRIU/VRU in the case of the assessee. The information was that the assessee has made payment of Rs.54.50 lakhs and Rs.20.50 lakhs in cash to his maternal brother Shri Balbir Singh during the FY 2012-13 relevant to the AY 2013-14. Accordingly, assessee’s case was reopened u/s 148 of the Act and consequently the notice u/s 142(1) of the Act was issued. The assessee was requested to furnish the computation of income, income and expenditure account, balance sheet, all bank accounts and the details of payment of Shri Balbir Singh amounting to Rs.54.50 lakhs and Rs.20.50 lakhs in cash. As the assessee failed to comply with the notices, the AO added both the amount in totaling to Rs.75 lakhs as unexplained money u/s 69A of the Act. Aggrieved assessee preferred appeal before the CIT(A). I.T.A. No. 3599/Del/2024 3 4. The CIT(A) confirmed the action of the AO and accordingly confirmed the additions. Aggrieved assessee is in appeal before the Tribunal. 5. We have heard rival contentions and gone through the facts and circumstances of the case. The facts of the case are that to purchase this residential property assessee took a loan of Rs.54.50 lakhs from Punjab National Bank (PNB) vide loan account no.666200NC00005648 on 21.01.20213. The assessee now before us filed copy of sale deed of property purchased i.e. residential House No.162, Block-E, Sector-Alpha-01, Greater Noida, wherein the loan amount of Rs.54.50 lakhs was obtained from PNB, Noida by DD No.913824 dated 22.01.2013. This amount in the assessee’s account has directly been received through loan account of PNB and the source is explained. Hence, this addition is accordingly deleted. 6. Coming to the cash paid by assessee for purchase of this house i.e. cash of Rs.20.50 lakhs paid to Shri Balbir Singh. The contention of the assessee was that out of this Rs.20.50 lakhs, 10 lakhs came from family savings accumulated over the years. The assessee’s contention was that the assessee’s eldest son Shri Kunal Chaudhary is Additional Director at Kaling Manpower Solution Private Ltd.and his monthly salary is at Rs.3,26,420/- and out of this he has saved a I.T.A. No. 3599/Del/2024 4 sum of Rs.10 lakhs and he has advanced this amount in cash. The balance amount of Rs.3,50,000/- was received as gift from his wife Smt. Sandhya Bhati and Rs.7,00,000/- as gift from his father Shri Rameshwar Singh Bhati. Shri Rameshwar Singh Bhati assessee’s father and assessee’s wife Smt. Sandhya Bhati both are Income tax payees having PAN Nos. AQNPS1307F and ASPRB6844N. The assessee’s father source is that he owns agricultural land about 13 acres in NagalaChiti, Gautam Buddha Nagar and at Nizampur, Sikandrabad, Bulandshahr that is under cultivation and two crops he is getting. Out of the agricultural saving he has gifted Rs.7,00,000/. As regards to his wife she has accumulated savings out of gift received during her life time. After going through the facts, we noted that assessee is able to explain the source and hence, we accept the explanation and allow this ground of assessee’s appeal. 7. In the result, appeal of the assessee is allowed. Order pronounced in the open court on 17/12/2024 Sd/- Sd/- (S RIFAUR RAHMAN) (MAHAVIR SINGH) ACCOUNTANT MEMBER VICE PRESIDENT Dated: 17/12/2024 *Kavita Arora, Sr. P.S. Copy of order sent to- Assessee/AO/Pr. CIT/ CIT (A)/ ITAT (DR)/Guard file of ITAT. I.T.A. No. 3599/Del/2024 5 By order Assistant Registrar, ITAT: Delhi Benches-Delhi "