2025 (8) TMI 1170

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....(A) deleting the addition of Rs. 4,08,78,128/-. 3. The brief facts are that the assessee is a Firm engaged in the business of real estate and filed its return of income (RoI) on 05.08.2016 for AY 2016-17 declaring total income at Rs. 5,35,410/-. The AO received information that assessee has purchased immovable property of Rs. 5.25 Crs. [excluding stamp duty and registration charges]. Therefore, the AO asked the assessee the source for purchase of this property by re-opening the assessment and issued notice u/s.148 of the Income Tax Act, 1961 (hereinafter in short 'the Act') on 30.03.2021; and in response to the notice, the assessee filed RoI on 04.08.2021 reiterating the income originally filed. Thereafter, the AO issued statutory notices ....

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....te the same. 5. Aggrieved, the Revenue is in appeal before this Tribunal. 6. We have heard both the parties and perused the material available on record. The aforesaid facts are not repeated for the sake of brevity. The Ld.DR drew our attention to Page No.27 of the impugned order wherein the Ld.CIT(A) has deleted the addition on the ground that even though the assessee has furnished the evidences to prove the identity, creditworthiness and genuineness of the loan creditors, still the AO didn't bother to make any enquiry and therefore, he was pleased to allow the appeal of the assessee and directed deletion of the addition. According to the Ld.DR, the Ld.CIT(A) erred in drawing such a conclusion, because, the Assessing Officer in the asses....

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....und that the AO couldn't enquire about the loan creditors which was an impossible task. 7. In this context it is also noted that even though sec.148 notice was issued on 30.03.2021 and other statutory notices were issued on 06.09.2021, 03.02.2022 & 11.02.2022 the assessee failed to file the source of the purchase of immovable property which assessee claimed to be loan taken from nine (9) creditors. According to us, the assessee ought to have filed the source of amount for purchasing the property for Rs. 5.25 Crs. at the earliest. But as noted, the assessee has filed copies of ITR, PAN and address of the loan creditors at the fag end, which couldn't be verified. Therefore, we don't countenance the action of the Ld.CIT(A) deleting the impugn....