VANDANA CHHAJER,SAINTHIA V. I.T.O., WARD - 3(2), SURI, BIRBHUM

ITA 1276/KOL/2024

AI Insights

The case involves two appeals by Suman Chhajer and Vandana Chhajer against orders passed by the Learned Commissioner of Income Tax-NFAC, Delhi, which were based on the assessments made by the ITO, Ward-3(2), Suri under section 143(3) of the Income Tax Act, 1961 for the Assessment Year 2016-17. The primary issue in both appeals was the addition under Section 69 of the Act concerning undisclosed investments in immovable property. The property was jointly purchased by the assessees and their two sisters, who later withdrew, leading to a dispute over the source of funds used for the purchase. The Tribunal found that the AO should reconsider the matter with additional evidence that was not previously submitted.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 36508 (ITAT-KOLKATA)
• Duration Of Justice: 4 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-10-2024
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2016-2017
• Appeal Filed On: 06-06-2024
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Keywords: Condonation of delay; Opportunity of being heard; Source of fund

Judgement Text

"आयकर अपीलȣय अͬधकरण, कोलकाता पीठ “एसएमसी’’, कोलकाता IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH: KOLKATA क ुमारȣ मधुͧमता राय, ÛयाǓयक सदèय क े सम¢ [Before Ms. Madhumita Roy, Judicial Member] I.T.A. No. 1186/Kol/2023 Assessment Year: 2016-17 Suman Chhajer (PAN: ABYPC 8055 A) Vs. ITO, Ward-3(2), Suri Appellant / ) अपीलाथȸ ( Respondent / Ĥ×यथȸ I.T.A. No. 1276/Kol/2024 Assessment Year: 2016-17 Vandana Chhajer (PAN: ACQPC 7653 R) Vs. ITO, Ward-3(2), Suri Appellant / ) अपीलाथȸ ( Respondent / Ĥ×यथȸ Date of Hearing / सुनवाई कȧ Ǔतͬथ 16.10.2024 Date of Pronouncement/ आदेश उɮघोषणा कȧ Ǔतͬथ 16.10.2024 For the Appellant/ Ǔनधा[ǐरती कȧ ओर से None For the Respondent/ राजèव कȧ ओर से Shri L. N. Dash, JCIT, Sr. D.R ORDER / आदेश Both the appeals filed by the assesses are directed against the order dated 31.08.2023 and 08.04.2024 respectively passed by the Learned Commissioner of 2 I.T.A. No.1186/Kol/2023 I.T.A No. 1276/Kol/2024 Assessment Year: 2016-17 Suman Chhajer & Vandana Chhajer Income Tax-NFAC, Delhi arising out of the order passed by ITO, Ward-3(2), Suri u/s 143(3) of the Income Tax Act, 1961 (hereinafter referred to as the Act) for Assessment Year 2016-17. Since both the matters relate to an identical issue, addition under Section 69 of the Act on account of undisclosed investment in respect of procurement of immovable property, these are heard analogously and are being disposed off by a common order for the sake of convenience. 2. At the time of hearing of the instant appeal, none appeared on behalf of the assessee neither any adjournment has been sought for. Hence, the matters are to be decided ex-parte. However, the assessees have filed written submissions. 3. So far as ITA No. 1186/Kol/2023 is concerned the appeal is barred by limitation by 7 days. An application for condonation of delay has also been filed and the reasons assigned thereto appears to be genuine and thus, the delay is condoned. 4. Both the assessee purchased an immovable property jointly at Rs. 1,00,22,283/- on 07.05.2015. After making payment of stamp duty and registration fees the total valuation of said immovable property came to Rs. 1,08,34,203/-. Each assessee has 50% share of the said property. The assessees were issued notices asking for explanation of the source of investment made and in the absence of reply and/or explanation against such notice, addition was made on the difference of amount of investment in the immovable property less total past saving in the hands of the respective assesee. 5. Before the First Appellate Authority it was submitted by the assessee that these two assessees along with their other two sisters, total four, entered into an agreement dated 15.03.2013 to purchase the said property and partial payment has been made by each assessee on 31.03.2015. However, the property was ultimately purchased by these two assesses as at the time of deed of convenience the other two sister namely Manju Chhajer and Sangeeta Chhajer expressed their unwillingness to purchase the aforesaid property. The amount paid by the other two sisters namely Manju Chhajer and Sangeeta Chhajer has been shown as loan by these two assesses before us. However, as they failed 3 I.T.A. No.1186/Kol/2023 I.T.A No. 1276/Kol/2024 Assessment Year: 2016-17 Suman Chhajer & Vandana Chhajer to explain the source of funds in the hands of the said Manju Chhajer and Sangeeta Chhajer neither any confirmation nor bank statement of these two individuals since filed, the claim of source of loan from the other two sisters were treated as unexplained and added in the hands of the assesses before us. 6. At the time of hearing of the matter, when the proposal from the bench for sending the issue to the file of Ld. AO to consider the same afresh upon examining the aforesaid documents which the assessees failed to submit before the First Appellate Authority were expressed, the Ld. D.R has not raised any objection with all his fairness. 7. Thus, having regard to the facts and circumstances of the matter, we dispose off these two appeals by remitting the issue to the file of Ld. AO to consider and decide the same afresh upon considering the bank statements and confirmations of Manjula Chhajer and Sangeeta Chhajer to be filed by the assessees. The Ld. AO is further directed to grant an opportunity of being heard to the assesses and also to consider the evidence on record or any other evidence which the assessees may choose to file at the time of hearing of the matters. 8. In the result, both the appeals of the above assessees are allowed for statistical purposes. Order is pronounced in the open court on 16th October, 2024 Sd/- Madhumita Roy (मधुͧमता राय) Judicial Member/ÛयाǓयक सदèय Dated: 16th October, 2024 SM, Sr. PS 4 I.T.A. No.1186/Kol/2023 I.T.A No. 1276/Kol/2024 Assessment Year: 2016-17 Suman Chhajer & Vandana Chhajer Copy of the order forwarded to: 1. Appellant- Suman Chhajer & Vandana Chhajer, both are residing at New Bridge Road, Sainthia-731234 2. Respondent – ITO, Ward-3(2), Suri 3. Ld. CIT(A)-NFAC, Delhi 4. Ld. Pr. CIT- , Kolkata 5. DR, Kolkata Benches, Kolkata (sent through e-mail) True Copy By Order Assistant Registrar ITAT, Kolkata Benches, Kolkata "