Jayshree Rao Vs. The Income Tax Officer

Parties Involved

Facts Summary

The assessee, Jayshree Rao, is an individual and a Non-Resident Indian (NRI) residing in the United Kingdom for the past 30 years. She did not earn any taxable income in India during the relevant assessment year and, therefore, did not file a return of income. The assessee's case was reopened under Section 148 of the Income-tax Act, 1961 based on information indicating the purchase of immovable property valued at Rs.3,08,93,102/- during the year under consideration and the fact that no return of income had been filed. The assessee clarified that the agricultural land in question was jointly purchased along with her four brothers for a total consideration of Rs.1,54,46,551/-, and that the transaction was mistakenly recorded twice in the records. Upon verification of the documents and Form 26AS, the Assessing Officer confirmed that the correct purchase value was Rs.1,54,46,551/- and that the assessee's share was Rs.30,89,400/-, representing a 20% share in the property. Despite this explanation, the Assessing Officer completed the assessment under Section 147 r.w.s. 144 of the Act and added Rs.5,89,400/- as unexplained investment under Section 69 of the Act.…

Legal Issues

• 1. Whether the Ld. CIT(A) erred in sustaining the addition made by Ld. A.O. of Rs. 89,400/-.
• 2. Whether the Ld. CIT(A) has not considered the submissions made by the appellant and addition sustained u/s 69 of the I.T. Act, 1961 for Rs. 89,400/- is against the principal of natural justice.
• 3. Whether the appellant has explained the source of payments of Rs. 89,400/-, however without appreciating the facts and documents on record addition sustained of Rs. 89,400/- require to be deleted.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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