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regarding purchase of property

CA Nitin Jain (Jaipur) (72 Points)

12 March 2019

one of my client purchased the property in ay 2013-14. client has the business of purchase sale of property. client did not pay the amount of property. now the AO disallowed the amount of property as considering the unexplained investment. is there any case laws relating to this matter in favour of assessee....?

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3 Replies

Umesh V Naig (Statutory Analyst) (452 Points)
Replied 12 March 2019

purchase of property is closed if it is registered under the Stamps duty act and registration unless other wise the ownership is not transfered

kindly analyse on this point to arrive at the AOs contention

CA Nitin Jain (Jaipur) (72 Points)
Replied 13 March 2019

thank you very much for reply. but AO is considering the payment made from undisclosed investment

Umesh V Naig (Statutory Analyst) (452 Points)
Replied 27 March 2019

yes any unexplained receipt or payment viz shown in current liability or current assets is the addition point for the AO , hence keep correspondence for not closing the entries