(1.) THE following substantial questions of law are raised by the Revenue in the present Tax Case Appeal filed as against the order of the Income Tax Appellate Tribunal, Chennai 'B' Bench dated 19.6.2009 in IT.(SS)A.No.79/Mds/2008.
(2.) THIS is a case of block assessment covering the period 01.04.1996 to 21.02.2003. It is seen from the facts narrated in the orders of the authority below that a search was conducted under Section 132 of the Income Tax Act, 1961 in the case of one Shri.Singanamala Ramesh Babu and his father Shri.S.Sathya Ramamurthy on 21.02.2003. One of the documents seized during the search indicate that there was a sale of immovable property by one Kanakarathnamma, W/o.Shri S.Sathya Ramamurthy. The said S.Kanakarathnamma sold 1/3rd share of her immovable property for a sum of Rs.22 lakhs (Rupees Twenty Two Lakhs only) to the assessee herein viz., Mallika.
(3.) IN response to this notice, the assessee filed return of income for the block period. As regards the investment in immovable property at 41, Giri Road, T.Nagar, Chennai, it was submitted that the assessee had purchased the property in the undivided share of 1/3rd for a sum of Rs.22 lakhs. The other 2/3rd of the property was purchased by her daughter Smt.Hemalatha and her son-in-law Shri.J.Senthil Kumar, each of them investing Rs.22 lakhs each. The assessee contended that she had sold her jewellery for a sum of Rs.5,70,095/- and also taken loan from her son-in-law and the balance was out of her salary income and cash on hand as on the date of investment.