TaxTMI 
TaxTMI 
2025 (11) TMI 980
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....aran Sahu is reproduced as under:- 2.1. Further, the affidavit dated 29.03.2025 of Advocate, Shri Mahavir Chaudary, explaining the reasons for not filing the appeal in time is as submitted by the assessee, which is reproduced as under:- 3. We have considered the reasons for the above delay and we find that the explanation is reasonable and bona fide and we are satisfied that the assessee was prevented by sufficient cause for the delay in filing of the appeal. We therefore condone the delay and admit this appeal for hearing. 4. Brief facts of the case:- This case was reopened u/s 148 of the Act vide noticed dated 28.03.2019 on the basis of AIR information of purchasing immovable property having value more than Rs. 30,00,000/-. The legal heir of the assessee Shri Ramcharan Lal Sahu filed the return of income of the assessee on 11.11.2019 declaring total income of Rs. 2,10,500/-. The assessment was completed on 29.11.2019 at returned income. On perusal of assessment order and case records during review, it was noticed that the assessee had shown income from stitching job, whereas, at the time of assessment proceedings the income was considered from "income from other sources ....
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....extent of Rs. 20 lacs. 3. Further it is noticed that the notice u/s 133(6) of the I.T. Act was issued to the bank to furnish the details of credit entry of Rs. 20 lacs, stands un-responded till the assessment order passed and thus the source of this amount still remains to be unexplained. It is also observed that no explanation has been furnished regarding share of the assessee in respect of over head expenses of Rs. 2,25,040/- i.e. 1/3 of Rs. 6,75,120/-. Thus the total amount of Rs. 22,25,040/- stands unexplained for lack of proper enquires or supportive documents. 5. In reply, the assessee vide letter dated 09.03.2022 submitted before the ld. PCIT that the assessee was an individual and the source of income was from stitching job and since the income of the assessee was below the taxable limit, the income tax return was not filed. It was further submitted that the assessment order has been passed after issuing notice u/s 133(6) of the Act after verification of bank accounts details, copy of registry and other property related documents. It was further submitted that the basic condition for issue of notice u/s 148 of the Act is after recording satisfaction that the inc....
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.... being heard and bringing on record the relevant supporting material and evidences in support of the action of the Assessing Officer. 6. Aggrieved with the said order, the assessee is in appeal before us on the following grounds of appeal: 1. Because the order passed by the Ld. Commissioner of Income Tax u/s 263 of the Income Tax Act Is wrong, illegal, arbitrary and against the facts of the case. And no Notice u/s 263 of the income Tax Act, 1961 was served on Appellant. 2. Because the assessment was originally completed u/s 147/143(3) of the Income Tax Act. In the assessment passed u/s 143(3) read with section 147 of the Income Tax Act the genuineness of source of payment was accepted considering the evidence furnished on the test of identity, genuineness of Transaction as mentioned in the Assessment Order. Consequently action of the Ld. CIT by invoking provision of section 263 is also wrong and bad in law. 3. Because in view of the fact that the assessee furnished requisite information and the Assessing Officer completed the assessment u/s 143(3) read with section 147 of the Act dated 29-11-2019 after considering the evidence filed and after a satisfa....
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....gistered deed were filed before AO. (kindly refer Page 2 of the Assessment Order). 4. After due consideration and verification, the AO accepted the investment in the purchase of immovable property. 5. Order u/s 263 dated 14.03.2022 has been passed by Ld. PCIT, Gwalior. The reason mentioned by Ld. PCIT is at Page 4 Para 5.1 and Page 5 Para 7. The reason mentioned is that the Assessing Officer has passed the Assessment Order without proper enquiry. 6. In the Order passed u/s 263, the submission filed by the assessee has been reproduced. Ld. PCIT without mentioning any specific reason has arbitrarily rejected the submission filed. (Kindly refer Page 4 Para 5). Submission 1. On the issue of investment in purchase of immovable property, specific query was made by the AO, duly mentioned in the Assessment Order and hence there is no failure on the part of AO. 2. The judgments referred and relied upon by Ld. PCIT in Order u/s 263 are all on the issue either no enquiry made by the AO or there is non-application of mind by the AO. None of the judgments is applicable to the facts of the present case. 3. Considering the facts as me....
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....r which the assessment was reopened, was properly enquired by the Assessing Officer in the given facts of the case before accepting it. The Assessing Officer only noted it as a fact that it was stated by the assessee that the source of the above payment was out of her past savings and stopped at that. The Assessing Officer also did not bring on record in the assessment order that prior to the said payment of Rs. 20 lakhs vide cheque no. 025951 on 18.02.2012, there was a credit entry of Rs. 20 lakhs on 13.02.2012 in her bank account which was the immediate source of the said payment. Further, the Assessing Officer has not brought on record any fact to show that he verified the source of above credit entry of Rs. 20 lakhs on 13.02.2012 and whether it represented her past saving as claimed by her. The Ld. PCIT in the show-cause notice had observed that nothing was filed by the assessee in support of her claim that it represented her past savings. The ld. PCIT further noted that moreover this amount was transferred from other account of the bank and at the time of assessment proceedings, it was left to be examined by the Assessing Officer as to whether that account pertained to the ass....
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....ing the requisite report from the bank. This fact makes the assessment order passed as erroneous as well as prejudicial to the interest of the revenue as this action of the Assessing Officer squarely falls under clause (a) & (b) to Explanation-2 (inserting by Finance Act, 2015 w.e.f 01.06.2015). It is also observed that no explanation has been furnished regarding share of the assessee in respect of over head expenses of Rs. 2,25,040/- i.e. 1/3 of Rs. 6,75,120/- and therefore accepting this claim of the assessee also squarely falls under clause (a) & (b) to Explanation-2 (inserting by Finance Act, 2015 w.e.f 01.06.2015). 10.1. Thus, in the given facts of the case, the source of the total amount of Rs. 22,25,040/- for acquiring the property for which the assessment was reopened u/s 147 of the Act vide notice dated 28.03.2019 was not enquired. In this regard, the observation of the Ld. PCIT in his show-cause notice that at the time of assessment proceedings, it was left to be examined by the Assessing Officer as to whether the account in which the credit entry of Rs. 20 lakhs was credited belonged to the assessee and how the amount was accumulated in that account to the extent of R....
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....tal during Assessment proceedings and compliances were all looked after by Shri Mahavir Chaudary Advocate. Similarly the notice u/s 263 and the compliance of the same was also looked after by him. 31/3/2025- SmtAcis Patria Ativoasto -Ciruca NOTARY Achoknagar Duk.Ashokruger Document 2 4. Order u/s 263 must have also been looked after by Shri Mahavir Chaudary but he never informed about the same to me. On receipt of Notice u/s 142 (1) dated 11.01.2023 sent on Income Tax Portal for subsequent assessment proceedings in consequent to Order u/s 263 , he informed me and also informed that appeal before Hon'ble ITAT against Order u/s 263 has mistakenly left to be filed. 5. Thereafter, the appeal against Order u/s 263 was got prepared and filed. 6. Thus, there was delay in filing the present appeal which is due to reasonable cause as mention above. 7. That the contents of this Affidavit are true to the best of my knowledge and belief. (Deponent) Verified and Signed at Ashok nagar on this 29 day of March 2025. 1-3/2 (Deponent) Emt.Asha Pativa Advocata NOTARY Ashoknagar Distt. Ashoknagar A Lie Pples । अशोकनà¥....