Bhusenahalli Nagappa Palaiah, Chikkamagaluru V. Income-Tax officer, Ward-1, Chikkamagaluru

ITA 620/BANG/2023

• Counselvise Citation: [2023] 102 COUNSELVISE.COM (IT) 0857 (ITAT-BANGALORE)
• Duration Of Justice: 1 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-10-2023
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: A
• Next Hearing Date: 10-10-2023
• Assessment Year: 2016-2017
• Appeal Filed On: 21-08-2023
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Source of fund
• Section: 69; 144; 22

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH : BANGALORE BEFORE SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER AND SMT. BEENA PILLAI, JUDICIAL MEMBER ITA No.620/Bang/2023 Assessment year : 2016-17 Bhusenahalli Nagappa Palaiah, S/o Nagappa G.B Halli, Gopalboosenahalli, Gopala Tarikere, Chikkamagaluru-577228. PAN – BUYPP 4283 K Vs. The Income-tax Officer, Ward-1, Chikkamagaluru. APPELANT RESPONDENT Appellant by : Shri Balram R Rao, Advocate Respondent by : Shri Nischal B, Add. CIT(DR) Date of hearing : 11.10.2023 Date of Pronouncement : 11.10.2023 O R D E R Per Chandra Poojari, Accountant Member This appeal by the assessee is directed against the order of the NFAC, Delhi dated 21/07/2023 for the assessment year 2016-17. ITA No.620/Bang/2023 Page 2 of 4 2. The asseseee raised the following grounds of appeal:- “1. On the facts and in the circumstances of the case the learned CIT appeal erred in upholding the addition of Rs.2,25,00,000/- as unexplained income under section 69 of the Income Tax Act. 2. On the facts and circumstances of the case the learned CIT appeals erred in upholding Rs. 1,65,000/- being returned income since the return of income filed by the assessee was treated as non- est. 3. The learned CIT appeals failed to consider the evidence filed evidences as well as submissions filed by the petitioner vide acknowledgment no. 952260191100223 filed on 10.2.2023. 4. The learned CIT appeals erred in recording that no submissions had been made by the appellant when the appellant had produced all evidence as well as submissions vide acknowledgment no. 952260191100223 filed on 10.2.2023. 5. The appellant praise that this court may please direct the CIT appeals to pay the cost of this appeal to the appellant. 6. For these and such other grounds the appellant praise that the appeal may please be allowed to meet the hence of justice.” 3. The facts of the case are that the assessee has purchased immovable property amounting to Rs.2,25,00,000/-. According to the assessee, the assessee purchased the property by obtaining loan from bank and no element of any cash was involved in this transaction. However, the AO not agreed with the contention of the asseseee made addition of ITA No.620/Bang/2023 Page 3 of 4 Rs.2,25,00,00/- u/s 69 of the Act and passed assessment order u/s 144 of the Act. 4. Against this, the assessee went in appeal before the NFAC, Delhi. 5. Since the assessee did not file any supporting evidence to show that the property was acquired by availing loan from bank, hence the NFAC, Delhi confirmed the addition. 6. Against this, the assessee is in appeal before us. 7. We have heard the rival submissions and perused the materials on record. In our opinion, it is appropriate to remit the issue back to the file of the AO with a direction to the assessee to produce necessary evidence for source of funds of Rs.2,25,00,000/- to purchase the impugned property situated at No.21 & 22 Payappa Garden, C & M Station, Bangalore Mahanagar Palike, Venkatappa Road, Tasker Town, Bengaluru. Accordingly, the issue in dispute is remitted to the file of AO for fresh consideration in accordance with law. ITA No.620/Bang/2023 Page 4 of 4 8. In the result, the assessee’s appeal is partly allowed for statistical purposes. Order pronounced in the open court on 11 th October, 2023. Sd/- Sd/- (BEENA PILLAI) ( CHANDRA POOJARI) Judicial Member Accountant Member Bangalore, Dated, 11 th Oct, 2023 / vms / Copy to: 1. The Applicant 2. The Respondent 3. The CIT 4. The CIT(A) 5. The DR, ITAT, Bangalore. 6. Guard file By order Asst. Registrar, ITAT, Bangalore.