2004 (9) TMI 315 - AT - Income Tax

Summary

Issues Involved:
1. Opportunity of being heard not provided to the assessee for asst. yr. 1993-94.
2. Share of investment in the construction of the property.
3. Rental income received by the assessee in respect of the property.

Analysis:

Issue 1: Opportunity of being heard not provided to the assessee for asst. yr. 1993-94
The learned Authorised Representative for the assessee did not press ground No. 1 of the appeal related to the asst. yr. 1993-94, concerning the lack of opportunity to be heard. The ground was rejected as not pressed.

Issue 2: Share of investment in the construction of the property
The AO observed that the assessee, a co-owner of a building, had not declared rental income from the property. The CIT(A) set aside the assessment order and directed further investigation. The AO assessed the rental income and completed the assessment. The CIT(A) upheld the order of the AO, stating the assessee had a share in the property and had given power of attorney to receive rent.

Issue 3: Rental income received by the assessee
The CIT(A) upheld the addition of rental income for the asst. yrs. 1993-94 and 1994-95, based on the power of attorney and lease agreement. The assessee argued that she did not make any investment in the property or receive rent. The Departmental Representative argued that documents indicated the contrary. The Tribunal analyzed the documents and statements, concluding that the assessee's claims were false. The Tribunal upheld the CIT(A)'s decision to sustain the additions made by the AO.

In conclusion, the Tribunal dismissed all three appeals filed by the assessee, upholding the decisions of the lower authorities regarding the investment in the property construction and rental income received by the assessee.