The Delhi bench of the Income Tax Appellate Tribunal (ITAT), while upholding an income tax addition, observed that there is no legal bar on GPA Holder to execute sale deed when he is authorized to do so.
On investigation, the department found that the sale consideration of property declared by the assessee in her income tax return is less than the sale consideration of property reported in AIR.
The assessee contended that it was a property of the father of the assessee who has given GPA to mother of the assessee, who has executed the sale deed in favour of the assessee. According to the assessee, since mother of the assessee was GPA holder, therefore, no sale deed could have been executed for consideration.
The Tribunal observed that the claim of assessee cannot be accepted and appears to be an afterthought.
“The assessee did not produce any evidence on record in support of any of the contradictory explanation made before A.O. or before Ld. CIT(A). The Ld. CIT(A) on examination of the GPA found that mother of the assessee was holding GPA for several properties and was authorized to execute the sale deed. There is no bar on GPA Holder to execute sale deed in Law when he is authorised to execute sale deed. Therefore, there is no infirmity in the orders of the authorities below in making and confirming the addition. Even before the Tribunal, assessee failed to explain the source of the investment in the above property. Therefore, assessee miserably failed to substantiate any of her explanation through any evidence or material on record. The appeal of assessee has no merit and the same is accordingly dismissed,” Tribunal said.
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