2025 (8) TMI 962

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....2. The assessee has raised the following grounds of appeal: "1. The Learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre [Ld. CIT(A), NFAC] has erred in law and on facts in upholding the reopening of assessment under section 147 of the Income-tax Act, 1961. 2. The Learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre [Ld. CIT(A), NFAC] has erred in law and on facts in upholding the reopening of assessment under section 147 of the Income-tax Act, 1961, despite the reopening being based on incorrect facts to the extent it reflects that the appellant has not filed return of income and appellant has purchased immovable property for a consideration of Rs 4,50,00,000/-. 3....

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....s issued by the Assessing Officer, the assessment was completed ex-parte u/s 144 of the Act, and the entire investment amount of Rs.4,50,00,000/- was treated as unexplained income under Section 69 of the Act and brought to tax under Section 115BBE of the Act. The total income of the assessee was computed at Rs.4,50,00,000/-, as against "nil" income previously declared by the assessee. 4. In appeal before CIT(Appeals), the assessee contended that it had, in fact, filed its return of income on 18.09.2017, declaring a minor loss, and further clarified that the amount in question represented an advance by the assessee against property purchase, recorded under "Loans and Advances" in its balance sheet. The assessee submitted that the property....

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....d the investment in property in the return of income filed." Such a statement in our view is vague, uncertain, and clearly indicates non-application of mind at the stage of recording of "reasons to believe". The Assessing Officer did not make a specific observation, which is a mandatory requirement for valid assumption of jurisdiction under section 147 of the Act, indicating non-application of mind and lack of analysis of complete facts by the Assessing Officer before initiating re-assessment proceedings. The use of the expression "either...or" reveals that the Assessing Officer was unsure of the facts and initiated proceedings in a speculative and mechanical manner, rather than on the basis of concrete material and belief. Further, in the ....