Tribunal quashes re-assessment order, directs deletion of Rs. 95,00,000 due to lack of justification.

The Tribunal ruled in favor of the Assessee, quashing the re-assessment order due to lack of clear justification for reopening and directing the deletion of the addition of Rs. 95,00,000 based on insufficient evidence. The appeal of the Assessee was allowed, emphasizing the importance of clear and evidence-based reasoning in tax assessments.

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Issues involved:
The issues involved in the judgment are the validity of re-assessment order under section 143(3) r.w.s. 147, confirmation of addition of Rs. 95,00,000, and the request for leave to add, alter & amend the grounds of appeal if necessary.

Validity of Re-assessment Order:
The Assessee challenged the re-assessment order on various grounds, including non-service of Notice u/s 143(2), failure to reject objections raised, lack of conclusive evidence, absence of independent inquiry before issuing notice u/s. 148, and failure to provide cross-examination. The Assessee claimed that the re-assessment proceedings were bad in law and requested for quashing the same. The Tribunal found that the reasons for reopening the assessment were based on a document that did not mention the alleged amount, thus concluding that there was no justification for the AO to reopen the assessment. Citing the Hon'ble Bombay High Court, the Tribunal emphasized the importance of clear and unambiguous reasons for reopening, based on evidence. Consequently, the reopening was quashed.

Confirmation of Addition of Rs. 95,00,000:
The Assessee contested the addition of Rs. 95,00,000 made by the AO, highlighting that the alleged sale consideration of Rs. 1.5 Crores was not supported by conclusive evidence. The Assessee argued that the entire reassessment was based on guesswork and surmise, lacking a clear basis. The Tribunal observed that the impugned document did not mention the amount of Rs. 1.5 crores, and as the registered Sale Deed indicated a consideration of Rs. 55,00,000, the AO was directed to delete the addition of Rs. 95,00,000. Consequently, the ground of the Assessee challenging the addition was allowed.

Request for Leave to Add, Alter & Amend Grounds of Appeal:
The Appellant sought permission to add, alter, and amend the grounds of appeal if necessary. However, specific details regarding the need for such modifications were not provided in the summary of the judgment.

In conclusion, the Tribunal ruled in favor of the Assessee, quashing the re-assessment order due to lack of clear justification for reopening and directing the deletion of the addition of Rs. 95,00,000 based on insufficient evidence. The appeal of the Assessee was allowed, emphasizing the importance of clear and evidence-based reasoning in tax assessments.

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