TaxTMI 
TaxTMI 
2025 (12) TMI 1333
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....inal show-cause notice was issued to the assessee dated 02.12.2019 through the Manager of the assessee by hand and also through ITBA portal. From the records, AO observed that assessee had entered into property transaction amounting to Rs. 1,11,00,000/-. The assessee was asked to submit as to why in absence of any detail or document on record, the total transaction of Rs. 1,11,00,000/- be not treated as assessee's income. Since there was no response from the assessee and also barred by limitation, the AO proceeded to make the addition u/s 69 of the Act and also invoked the provisions of section 115BBE of the Act. 3. Aggrieved with the above order, assessee preferred an appeal before the NFAC, Delhi. The ld. CIT(A) reproduced detailed written submissions submitted by the assessee in his order at pages 7 to 10 of the impugned order. During appellate proceedings, the assessee submitted that the AO sent all the notices by email id which was not operational and it came to note subsequently only after demand is populated on the web portal of the Department. Further he observed that assessee filed additional evidences in the shape of ledger account of the property captioned as 'advance....
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....and all other submissions made before him were made from the same email id. He did not accept the fact submitted by the assessee that email account was non-operational. With the above observation, he also observed that though the assessee has stated that the investment in property was funded by liquidating the amounts invested in other investee company. However assessee has not furnished name and address of such investee companies, amount of funds liquidated from each company, their ledger accounts as appearing in its books of account along with confirmation letters from the investee company concern etc. to prove the genuineness of the transaction. With the above observation, he dismissed the appeal filed by the assessee. 5. Aggrieved assessee is in appeal before us raising following grounds of appeal :- "1 The Ld. CIT(A) has erred in law and on facts of the case in sustaining the addition of Rs. 1,11,00,000/- which was added to the income of the Appellant company u/s 69 of the Income Tax Act 1961 (hereinafter referred to as "the Act") on account of alleged undisclosed investment by the Ld. AO vide impugned assessment order passed dated 7th December 2019 u/s 144 of the ....
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....ecord in unbiased manner. 5. The Ld. Assessing officer has erred in making the addition of Rs. 1,11,00,000/- into the total income of appellant company based on mere suspicion, conjectures and surmises which is against the true intent of law. Hence, the impugned addition needs to be deleted. The Ld. Assessing Officer has erred in not appreciating the fact that making assessment on adhoc basis u/s 144 of the Act, otherwise than on the basis of all the relevant material gathered after giving an opportunity of hearing to the appellant company." 6. At the time of hearing ld. AR of the assessee submitted that the assessee has filed additional evidences before the ld. CIT(A) which ld. CIT(A) has accepted the above additional evidences which contained the complete details of investment i.e. advance made against the property containing the complete details of the transaction, copy of bank statement and also registered sale deed dated 02.05.2019 before the ld. CIT(A). Further he submitted that after accepting the additional evidences, the remand report was called from the AO who had not complied till the passing of the impugned order. Further he submitted that ld. CIT(A) has sus....
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....said payment in its financial records. The registration of the same property was concluded on 02.05.2019. Further we observe that all the remittances for the purchase of property was remitted through banking channel and the same was acknowledged by the other party in the sale deed itself at page 7 of the agreement which is placed at pages 44 & 45 of the paper book. Ld. CIT(A) after appreciating the above facts on record proceeded to dismiss the appeal of the assessee by observing that assessee has made a wrong submission before him with regard to email id. 10. After considering the material facts available on record, we observe that assessee has recorded the above transaction in its books of account and filed the relevant information before first appellate authority. First Appellate Authority appreciated the above facts on record and he proceeded to sustain the addition made by the AO. In fact, the AO has proceeded to make the addition on the suspicion that the investment made by the assessee is unexplained investment u/s 69 of the Act based on the fact that assessee has not submitted any document before him and not complying to various notices. However, all the details were sub....