Wife’s name, Husband’s Money – flat purchase – Tax Notice to wife
The petitioner filed her return of Rs.4,36,850/- for the A.Y. year 2021-22. Section 133(6) IT Act notice dated 11.6.2024 was issued about purchase of immovable property of Rs.6.75 crores and details thereof were sought.
The petitioner replied the said notice that she is house-wife and the entire purchase was made by her husband from his own funds / sources, although her name was added as second owner.
In response to notice dated 18.9.2023, the petitioner had submitted the purchase deed and the bank statement of her husband for 1.12.2020 to 31.1.2021 showing the entire consideration paid from his funds.
HELD that the Income Tax Officer issuing Section 148 Notice could never have had the reason to believe that the income of the petitioner had escaped assessment for the said year. The details for the purchase of the flat have to be sourced from her husband’s assessment and not the wife since she had not made any payment for purchase of the property.
Thus, the nominal joint owners of family who have not contributed to the purchase of property, cannot face re-assessment.
