TaxTMI 
TaxTMI 
2025 (7) TMI 591
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....ssment proceedings are void ab-initio and the assessment order passed under this, also stands void. 2. That the Ld. A.O. and Hon'ble CIT(A) has erred in observing on order that "the assessee did not file any explanation of the source for the investment detected by the department and he failed to reply show-cause notice issued by the department" and dismissed the appeal. Both Ld. AO and Hon'ble CIT(A) ignored assessee's reply given earlier which is illegal and uncalled for. 3. That on the basis of facts and circumstances of the case, the Ld. AO and Hon'ble CIT(A) has erred in adding a sum of Rs. 84,00,000, just not to produce creditors in the returned income as unexplained and observations made, inferences drawn....
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.... belief that the investment of Rs 77 lakh has escaped assessment. 5. In the course of reassessment proceedings, the AO found that the assessee has not filed any reply and due to non-response, the Assessing Officer passed an order u/s 147 r.w.s 144 of the Act, by making an addition of Rs. 84 lakh u/s 69 as unexplained investment on the ground that lenders were not produced before him. 6. The assessee subsequently filed an appeal before the CIT(A)/NFAC Delhi but the CIT(A)/NFAC passed an order u/s 250 of the Act who confirmed the addition made. 7. Now the assessee is aggrieved and in in appeal before us. 8. Before us, the ld. counsel for the assessee vehemently stated that the notice issued u/s 148 of the Act dated 28.03.2019 is d....
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....e first notice u/s 148 dated 28.03.2019 was issued at the address of Varun Gupta, S/o Shri Vinod Gupta, Saket, Meerut. The assessee claims that this notice was not served within prescribed time. The second notice u/s 148 dated 05.08.2019 was issued at the address of Varun Gupta, S/o Late Vinod Gupta, B-7, Saket, Meerut. This second notice, along with the notice dated 28.03.2019, was served on the assessee and thereafter the assessee participated in the re-assessment proceedings by filing the return and furnishing replies/documents as sought for. 11. We find that the assessee has argued that while the 1st notice was not served within time because of incomplete address, the 2nd notice u/s 148 which was served on him, was time barred as the....
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....he Act will apply. In this context, the hon'ble Supreme Court in Commissioner of Income- Tax vs. Laxman Das Khandelwal AIR 2019 Supreme Court 3926 held as under: "According to Section 292BB of the Act, if the assessee had participated in the proceedings, by way of legal fiction, notice would be deemed to be valid even if there be infractions as detailed in said Section. The scope of the provision is to make service of notice having certain infirmities to be proper and valid if there was requisite participation on part of the assessee. It is, however, to be noted that the Section does not save complete absence of notice. For Section 292BB to apply, the notice must have emanated from the department. It is only the infirmitie....
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....therefore hold that the notice u/s 148 is validly issued after proper recording of reasons. We also find that the AO has proceeded to make the assessment in the manner provided u/s 144 of the Act by following the process of giving opportunity by service of notice and calling the assessee to show cause regarding assessment to be made. Accordingly, Ground No. 4 and 5 are dismissed. 14. As far as merits of the case is concerned, we find that the assessee has made an investment in property for Rs 84 lakh, including stamp duty of Rs 7 lakh, during FY 2011-12. In the course of reassessment proceedings, the assessee submitted before the AO that the property was purchased out of loan taken from various persons as follows: i) M/s Bhagwat....