Income levy Dept must Establish Assessee's Share before Taxing Entire Joint Property Purchase: ITAT [Read Order]

The Rajkot bench of Income Tax Appellate Tribunal ( ITAT ) held that the income tax department cannot tax the entire joint property purchase in the hands of a single assessee without establishing the share of investment.

While quashing the reassessment proceedings initiated by the AO for the joint purchase of an immovable property of Rs. 50 lakhs, the tribunal said that the officer has to apply his mind to the share of the assessee and his investment before making additions entirely on the assessee. As per the facts of the case, the assessee Nilesh Harilal Manek did not file a return for AY 2009-10. The AO during its scrutiny noticed that a property was purchased with Ms.

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Nayana J Manek in 2008 for Rs. 50 lakhs. The AO added the entire consideration paid for the property as unexplained in the hands of the assessee.