Javadsha Hasmukhray Varaiya vs. ITO

Parties Involved

Facts Summary

The assessee, Javadsha Hasmukhray Varaiya, had not filed his return of income for the year under consideration. The Assessing Officer noticed that the assessee had entered into an agreement for the purchase of an immovable property with M/s Runwal Developers Pvt. Ltd. for an aggregate consideration of ₹47,81,250. The Assessing Officer completed the assessment ex parte and treated the entire agreement value as unexplained investment under section 69 of the Income-tax Act, 1961. The assessee submitted that the property was purchased jointly with his wife, Smt. Kavita Varaiya, and that the payments were made from her bank accounts. The CIT(A) confirmed the addition of ₹47,81,250. The assessee appealed against this order.…

Legal Issues

• 1. Whether the entire agreement value of ₹47,81,250 can be treated as an investment made during the relevant financial year?

Judgment Outcome

Decided in favour of Assessee.

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