Bela Juneja vs Commissioner Of Income Tax
2011 Latest Caselaw 2764 Del

*     IN THE HIGH COURT OF DELHI AT NEW DELHI

+                       ITA No. 779/2011

%                           Date of Order : 23RD MAY, 2011

BELA JUNEJA                                           ... APPELLANT

                        Through:    Dr. Rakesh Gupta, Advocate

                   Versus

COMMISSIONER OF INCOME TAX                          ... RESPONDENT

                        Through:        Mr. Kamal Sawhney, Advocate.

CORAM:
HON'BLE MR. JUSTICE A.K.SIKRI
HON'BLE MR. JUSTICE M.L.MEHTA

1. Whether the Reporters of local papers               NO
   be allowed to see the judgment?
2. To be referred to Reporter or not?                  NO

3. Whether the judgment should be                      NO
   reported in the Digest?

M.L. MEHTA, J. (Oral)

1. A search and seizure operation was carried out on 22 nd

September, 2005 under Section 132 of the Income Tax Act,

1961 at the premises of Sh. Pravin Juneja at E-47, Greater

Kailash-II, New Delhi and during the course of said search

documents relating to sale and purchase of property were

found. In those documents transaction had been carried out

in the name of his wife Smt. Bela Juneja/appellant.

2. Notice under Section 153A/153C of the Income Tax Act was

issued calling upon the appellant/assessee to furnish return.

In response thereto, she furnished return of her income

declaring her total income of `2,83,546/-. The documents

which were seized included, (i) balance sheet and statement

of capital accounts of Smt. Bela Juneja and Pravin Juneja as on

31st March, 2002 (ii) receipt dated 18th October, 2004 issued

by S.C. Sharma of `1 lakhs received in cash from Smt. Bela

Juneja.

3. The Assessing Officer noted that the assessee had purchased

property bearing 40/43, Chittranjan Park, 2nd Floor terrace and

as per the sale deed the consideration was `8,45,600/-

[`45,600/- was towards cost of stamp papers]. During the

course of proceedings an agreement dated 20th October, 2004

executed between Sh. A.B. Singh, owner, and Sh. Pravin

Juneja for the purchase of the said property was found. As per

this agreement, the property was agreed to be sold for

consideration of `31 lakhs by Sh. A.B. Singh on 20th October,

2004. An amount of `1 lakh was shown to have been received

by the vendor in cash and `15 lakhs was paid on 25th October,

2004 and balance `15 lakhs was to be paid on or before 30th

October, 2004 at the time of handing over of the possession.

However, the sale deed was registered in the name of

assessee on 27th October, 2004 for `8 lakhs. The assessee had

not furnished any plausible explanation for the difference

between agreed price of `31 lakhs and actual price as per sale

deed of `8 lakhs. The Assessing Officer held that difference of

`22,54,400/- as unexplained investment under Section 69 of

the Act.

4. The CIT(A) dismissed the appeal of the assessee. While doing

so, the CIT(A) gave following reasons:-

"From the above description of the property in the sale deed, it cannot be said that the second floor and terrace over the second floor is unauthorized construction. Thus, the appellant has not adduced any cogent evidence to suggest the reasons for reduction in the purchase price from Rs.31 lakhs as agreed vide agreement dated 24- 10-2004 to Rs.8 lacs shown in the deed registered on 29-10-2004. By considering the surrounding circumstances and also applying the test of human probability, it is clear that the appellant had paid a total consideration of Rs.31 lacs, whereas the sale deed was registered only for Rs.8 lacs. The very fact that the amount of Rs.1 lakhs in cash paid on 20-10-2004 was not adjusted against purchase consideration of Rs.8 lacs shown in registered deed, where

the total payment of Rs.8 lacs was shown to be made by three cheques only clearly shown that the appellant has paid the excess amount over and above the amount shown in the sale deed. Hence, the AO was justified in making an addition of Rs.22,54,400/- (it should have been Rs.23 lacs i.e. difference between Rs. 31 lacs and Rs.8 lacs) as unexplained investment towards the acquisition of property no. 40/43, Chittranjan Park (2nd Floor with terrace), New Delhi. Hence the addition of Rs.22,54,400/- is confirmed."

5. The Tribunal while agreeing with CIT(A), recorded as under:-

"Coming to the material available on record, enough evidence was found by the lower authorities pertaining to assessee from the premises in which she was living that the above payment in respect of property was made by her. The same has neither been accounted for nor assessee has given any satisfactory reply about the investment in question. In view thereof, we see no infirmity in the orders of lower authorities. Accordingly, order of CIT(A) sustaining the addition in question is upheld."

6. We have heard learned counsel for the assessee as also for

the Revenue.

7. No question of law could be pointed out by learned counsel for

the assessee for our consideration. These were all questions

of facts on which the findings have been recorded by the

authorities below. There is no perversity or infirmity in the

impugned order. There is no question of law involved, much

less substantive question of law. The appeal merits dismissal

and is hereby dismissed.

M.L.MEHTA (JUDGE)

A.K.SIKRI (JUDGE)

MAY 23, 2011 AK