Unexplained land investment additions cannot rest solely on uncorroborated spreadsheets and untested retracted statements in reassessment proceedings.
Unexplained investment additions cannot rest solely on uncorroborated spreadsheets and untested retracted statements where authorship and cash outflow are unverified; the presumption for seized material is rebuttable. Reassessment notices under section 148 must comply with the faceless scheme under section 151A; issue by a jurisdictional officer outside that framework invalidates the notices. Assessment orders require a computer-generated Document Identification Number, subject to specified exceptions and safeguards; a missing or subsequently generated number without compliance renders the orders invalid. Reassessment notices founded on an alleged search are invalid where no search occurred.
Issues: (i) Whether additions for alleged unaccounted investment in land under sections 69A and 69B could be sustained solely on retracted statements and uncorroborated seized Excel sheets; (ii) Whether notices under section 148 issued by the jurisdictional Assessing Officer contrary to the faceless scheme under section 151A were valid; (iii) Whether assessment orders issued with a manual, missing, or post-dated Document Identification Number complied with CBDT Circular No. 19/2019; (iv) Whether notices under section 148 founded on an alleged search in the assessee's case, when no such search had occurred, were valid.
Issue (i): Whether additions for alleged unaccounted investment in land under sections 69A and 69B could be sustained solely on retracted statements and uncorroborated seized Excel sheets.
Analysis: The seized spreadsheets had disputed authorship and were not independently supported by agreements, receipts, bank material, third-party confirmations, or evidence of actual cash outflow. The statement relied upon was contradicted by the statement of the person overseeing the group affairs, and both statements were subsequently retracted on plausible grounds without further examination or cross-verification. The presumption under section 132(4A) was rebuttable and could not convert unauthenticated private notings into conclusive proof of unexplained investment. Sustaining additions without independent corroboration or effective testing of the retractions was inconsistent with natural justice safeguards.
Conclusion: The additions under sections 69A and 69B were deleted in full, in favour of the assessee.
Issue (ii): Whether notices under section 148 issued by the jurisdictional Assessing Officer contrary to the faceless scheme under section 151A were valid.
Analysis: Section 151A and Notification S.O. 1466(E) dated 29.03.2022 vested authority to issue the relevant reassessment notices in the faceless regime. The notified scheme excluded concurrent jurisdiction of the local jurisdictional officer for this purpose. Issuance by an officer outside that framework constituted a jurisdictional defect at the inception of the reassessment proceedings.
Conclusion: The notices under section 148 were void ab initio for want of jurisdiction, in favour of the assessee.
Issue (iii): Whether assessment orders issued with a manual, missing, or post-dated Document Identification Number complied with CBDT Circular No. 19/2019.
Analysis: CBDT Circular No. 19/2019, issued under section 119, requires a computer-generated Document Identification Number in departmental communications, subject only to specified exceptional circumstances and prescribed safeguards. The assessment orders were manually issued or lacked a valid pre-generated Document Identification Number, while the purported intimation was generated subsequently. No exceptional circumstance, contemporaneous recorded reason, or requisite approval was established.
Conclusion: The assessment orders were nullities for non-compliance with CBDT Circular No. 19/2019, in favour of the assessee.
Issue (iv): Whether notices under section 148 founded on an alleged search in the assessee's case, when no such search had occurred, were valid.
Analysis: The notices proceeded on the premise that a search had been conducted against the assessee, although the assessment record acknowledged that no such search occurred. This foundational factual defect invalidated the statutory notice initiating reassessment.
Conclusion: The notices under section 148 were defective and invalid, in favour of the assessee.
Final Conclusion: The evidentiary and jurisdictional foundations of the reassessments failed, leaving no basis for consequential fiscal adjustments.