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TMI Blog2024 (7) TMI 903X X X X Extracts X X X X X X X X Extracts X X X X ..... om her husband. She stated categorically that the funds were accounted for in her husband's books of account. She also requested that she be provided an opportunity to make more detailed submissions if the explanation is not satisfactory. In reply to the show cause notice, once again, the bank statements were attached. It is stated therein that the payments were numbered on the bank statements and that such payments were made directly to the vendor. It should be noticed, however, that the petitioner did not submit the return of income of her husband or the ledger account, if any, relating to the purchase of this property. As petitioner submitted that such documents were not called for by the Income Tax Department. This submission is not entirely satisfactory because it was incumbent on the petitioner to not only establish the source of funds, but also to show that the sum was duly reported by her husband in his return of income and that applicable tax thereon had been paid. Petitioner has placed on record evidence that her husband paid for the purchase of the relevant immovable property. In the event that her husband had duly declared this income and paid applicable taxes there ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... py of this order. In order to enable the petitioner to upload the same, the respondent shall provide access to the portal. Upon receipt of such additional documents, the respondent is directed to provide a reasonable opportunity to the petitioner, including a personal hearing through video conference, and thereafter issue a fresh order insofar as the addition under Section 69A is concerned within three months from the date of receipt of a copy of this order. For the avoidance of doubt, it is clarified that the order does not call for any interference as regards the addition under Section 56(2). - Hon'ble Mr. Justice Senthilkumar Ramamoorthy For the Petitioner : Mr. S. Sathyanarayanan For the Respondent : Dr. B. Ramaswamy Senior Standing Counsel ORDER An assessment order dated 13.03.2024 in respect of assessment year 2019-20, which corresponds to financial year 2018-19, is challenged in this writ petition. 2. The assessee is assessed to tax under PAN AGLPR2701E. In respect of the above mentioned assessment year, the assessee did not file return of income on the basis that her income was below the exemption limit. She had purchased an immovable property at Thottipalayam Village ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... petitioner. 5. As regards the second issue relating to the alleged failure to declare the market value of the property and pay taxes thereon, learned counsel contended that stamp duty is liable to be paid on the guideline value and that it was paid on such basis. By referring to the reply to the show cause notice, he pointed out that the petitioner stated that she was unable to object to the fixation of stamp duty by reckoning the value at Rs. 1,83,12,000/- due to family and other personal reasons and that she was taking steps to claim a refund of the excess stamp duty. He further submitted that the show cause notice referred to Section 56(2)(vii)(b), whereas the impugned order refers to Section 56(2)(x)(b)(B). Therefore, he contended that the impugned order cannot be sustained on account of the discrepancy in the provisions relied on by the respondent. 6. Dr.B.Ramaswamy, learned senior standing counsel, accepts notice for the respondent. By referring to the impugned order, learned senior standing counsel points out that the notice under Section 148 was issued on 30.03.2023. Even in response to such notice, he submits that the petitioner did not file the return of income, which wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e deemed to be the income of the assessee for such financial year. As is evident from the above provision, it is directed at unexplained money. Consequently, if the assessee concerned is required to maintain books of account and does not record the relevant income or other article in such books of account, the assessee is called upon to provide an explanation. If he fails to provide an explanation or if his explanation is not satisfactory, the money or other article shall be deemed to be the income of the assessee. In the case of an assessee who is not required to maintain books of account, but the Income Tax Department receives information that such person is the owner of unexplained money or other article, such assessee would be called upon to provide an explanation and the same consequences would follow if the assessee does not reply or if the reply of the assessee is not satisfactory. This is evident from the use of the expression books of account, if any , in Section 69A. If any other interpretation is placed on this provision, any assessee not required to file books of account would get away scot-free when such assessee is found to have unaccounted money. 8. In response to th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oner has placed on record evidence that her husband paid for the purchase of the relevant immovable property. In the event that her husband had duly declared this income and paid applicable taxes thereon, grave injustice would be caused inasmuch as the same income would be subject to tax in the hands of two persons. For such reason, the impugned order warrants interference. Since the petitioner did not avail of the opportunities and provide all necessary documents, the petitioner is liable to pay costs. 12. Turning to the second issue relating to the addition of a sum of Rs. 26,16,000/-, such addition was proposed on account of the fact that the Sub Registrar concerned concluded that the market value of the property was Rs. 1,83,12,000/- and not Rs. 1,56,96,000/-. On such basis, the differential amount of Rs. 26,16,000/- was added to the income of the assessee. Learned counsel for the petitioner contended that the show cause notice referred to Section 56(2)(vii)(b), which is not applicable to the assessee, whereas the impugned order refers to Section 56(2)(x)(b)(B). On examining the provisions referred to in the show cause notice and the impugned order, it is clear that the provisi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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