2010 (10) TMI 1049 - AT - Income Tax

Summary

Issues involved: Appeal against deletion of addition of Rs. 37,25,491 relating to sale/purchase transactions of the HUF under section 143(3) of the I.T. Act for assessment year 2006-07.

The appeal by the Revenue was against the order of CIT(A), Panchkula dated 1.10.2009. The issue raised was the deletion of addition of Rs. 37,25,491 being entries relatable to sale/purchase transactions of the HUF. The assessee, working as Superintendent in the General Administration Wing of Haryana Government, declared income of Rs. 84,518. The Assessing Officer noted deposits in a bank account and made an addition of Rs. 37,25,491, considering it as the income of the assessee. Before the CIT(A), it was argued that income from sale/purchase of properties was shown in the return filed by the assessee in his HUF capacity. The CIT(A) observed that the transactions in the bank account related to the HUF of the appellant, and the addition made by the Assessing Officer was ordered to be deleted.

The Revenue appealed against the CIT(A) order as the bank account was opened in individual capacity. The assessee provided evidence supporting that the transactions in the bank account related to the business of sale/purchase of properties carried on by his HUF. The CIT(A) found no fault in the entries in the books of account of the HUF and upheld that the transactions in the bank account related to the HUF of the assessee. The Tribunal confirmed the order of CIT(A) in deleting the addition of Rs. 37,25,491, dismissing the appeal of the Revenue.