TaxTMI 
TaxTMI 
2025 (5) TMI 2194
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....ition, failed to appreciate that the assessment order passed under section 147 read with sections 144 and 144B of the Income-tax Act, 1961 ("the Act"), is bad in law and void ab initio for the following reasons: i. The alleged escaped income is less than Rs. 50 lakhs, rendering the reassessment proceedings invalid. ii. The reopening was based on mere presumption and surmises, as it was initiated on borrowed satisfaction without independent application of mind by the AO. iii. The AO failed to appreciate the submissions made by the appellant and did not consider the true facts of the case 3. Without Prejudice to the above: i. The learned CIT(A) erred in confirming the addition of Rs.6,69,652/- as unexplained investments under section 69C of the Act and Rs. 1,54,019/- as income from other sources. The additions were made solely based on the AO's observations without appreciating the facts of the case, the true nature of the transactions, and the surrounding circumstances. ii. In the interest of natural justice, it is prayed that the order of the learned CIT(A) be set aside, and the appellant be granted an opportunity to present....
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....iling portals, it is noted that the assessee has not filed any return of income for A.Y.2016-17 but has entered into transaction as mentioned in above Para No. 02. Considering the nature of information and details available on e-filing portal & 360-degree information, conducting of any inquiry before issue of show cause notice as per provisions of section 148A(a) is considered as 'not required'. 3.1. In view of the above, it is evident that the assessee has entered into huge transaction but has not filed return of income. Therefore, a show cause notice was issued to the assessee u/s 148A(b) on 01.02.2023 bearing DIN No. ITBA/AST/F/148A(SCN)/2022- 23/1049300603(1), through ITBA online System and the same was dispatched to the assessee through ITBA and shared with the assessee through the eproceedings tab of "Pending Actions" module of e-filing portal of the assessee electronically. Time of more than 7 days was duly provided to the assessee as per the provisions of section 148A(b) of the Act and the date of compliance was fixed as 13.02.2023. 4. Response of the assessee:- The reply of the assessee in response to the show cause notice u/s 148A(b) of the I. T. Act, 19....
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....d from the end of the relevant assessment year unless the Assessing Officer has in his possession books of account or other documents or evidence which reveal that the income chargeable to tax, represented in the form of- (i) an asset; (ii) expenditure in respect of a transaction or in relation to an event or occasion; or (iii) an entry or entries in the books of account, which has escaped assessment amounts to or is likely to amount to fifty lakh rupees or more:] 5. In this case, the total value of the Flat purchased by the Assessee along with her husband is Rs.66,95,000/-. Therefore, Assessee's share will be 50% of Rs.66,95,000/- i.e. Rs.33,47,500/- which is less than Rs.50 lakhs. Therefore, as per Section 149(1)(b) of the Act, no notice could have been issued in the case of the assessee u/s.148 of the Act, after a period of three years from the end of assessment year. In this case, the Assessing Officer had not bothered to read the Registered Agreement for Sale which has been relied by Assessing Officer as information received. The said "Agreement of Sale" dated 29.05.2015 is between Aditya Shagun Developers as Promoter and i) Mrs.Kalpana Vijay Kada....
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....5 says that Assessee has not filed any evidence, which was never asked. Nothing prevented the ITO from asking a specific question. 7. Even otherwise, we have studied the impugned "Agreement of Sale" dated 29.05.2015, the relevant Paragraphs of the said agreement are reproduced as under : "G] The Flat Purchaser offered to the Promoter for allotment to the Flat No.102 on First floor in the Building B-4 to be constructed on the portion of the land of plot no.2 of first schedule property which is more particularly described in annexure D hereunder written and which for the sake of convenience is hereafter referred to as 'the said Flat'................................................. The Flat Purchaser/s herein shall pay the aforesaid agreed consideration to the Promoter herein in the following manner - Amount Particulars i] Rs.16,73,750/- At the time of this Agreement. ii] Rs. 6,69,500/- On casting of the First slab, iii] Rs. 6,69,500/- On casting of the Second slab, iv] Rs. 6,69,500/- On casting the Third slab, v] Rs. 6,69,500/- On casting the Fourth slab, vi] Rs. 6,69,500/- On casting th....
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....usal of the HDFC Bank Account Statement of Mr.Vijay Laxmanrao Kadam, it is seen that following payments were made to M/s.Aditya Shagun Developers for the purchase of impugned Flat : 23.03.2015 - Rs.1 lakh 10.04.2015 - Rs.2 lakhs 24.04.2015 - Rs.1 lakh 28.04.2015 - Rs.1 lakh 22.05.2015 - Rs.1 lakh 8.1 Similar are the payments on various dates. This again explains that the payments have been made through the Bank Account of Mr.Vijay Laxmanrao Kadam. 8.2 Mr.Vijay Laxmanrao Kadam had field a Return of Income for A.Y.2016-17 with ITO, Ward-13(2), Pune vide Acknowledgment No.341822490290716 dated 29.07.2016. Thus, Mr.Vijay Laxmanrao Kadam had filed Return of Income u/s.139(1) of the Act, disclosing total income of Rs.15,70,770/-. As per the said Return of Income of Mr.Vijay Laxmanrao Kadam, he has sold a Flat during the A.Y.2016-17. The Income Tax Department had all this information as this information is visible from the Income Tax Return of Mr.Vijay Laxmanrao Kadam, but the Department did not bother to verify the facts. Ironically, PAN of Mr.Vijay Laxmanrao Kadam is also mentioned in the impugned Agreement of Sale along with copy of PAN Card. Therefo....