2026 (1) TMI 357

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....34(2), Delhi (hereinafter referred to as 'the ld. AO') u/s 144 of the Act for Assessment Year 2017-18. 2. The brief facts of the case are that the return of income declaring an income of Rs. 4,29,700/- was filed on 31.10.2017. The return was processed u/s 143(1) of the Act. The assessee had derived income under the head 'Income from business or profession' 'income from other sources' and salary. The case was selected for scrutiny under complete scrutiny for the reasons:- (i) Purchases shown in the ITR is less than the invoices value of imports shown in the export import data. (ii) Custom duty paid as shown in the ITR is less than the duty paid as export import data (iii) Abnormal increase on cash deposits durin....

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....sent case. 3. On the facts and circumstances of the case, the authorities below has erred both in law and on facts in the case in treating the amount of cash deposits of Rs. 32,00,000/- in the bank accounts as unexplained money u/s 69A rws 115BBE of IT Act ignoring the fact that the initial onus has been discharged by the appellant by submitting relevant documents and the AO has not made any adverse inference on the documents submitted by the AO. The additions made by the AO are based on mere suspicion, surmises and conjectures which are unsustainable, arbitrary and unjustified. 4. On the facts and circumstances of the case, the authorities below has erred both in law and on facts in the case in treating unsecured loan of ....

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....is of books of account in accordance with provision of sec 145(1) of IT Act. 7. On the facts and circumstances of the case, the authorities below have erred both on facts and in law in upholding the passing of order of assessment u/s 144 of IT Act when all the evidences in support of additions are already submitted during course of assessment proceedings and therefore, the passing of order of assessment u/s 144 instead of 143(3) of IT Act vitiates the assessment proceedings. 8. The appellant craves leave to add, delete, modify / amend the above grounds of appeal with the permission of the Hon'ble appellate authority." 6. The ld. Authorised Representative for the appellant-assessee, regarding ground of appeal No.1, submi....

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....ns of sec 292BB does not come to the rescue of the department as it is not a case of nonservice of notice but a case of non-issue of notice. 8. The ld.DR submitted that the ld. AO had passed ex parte order. The ld.CIT(A) has set aside the order of the AO for denovo adjudication. 9. From examination of the record in the light of the aforesaid rival contention, it is crystal clear that the ld. AO/ITO, Ward-34(2) passed the assessment order dated 20.12.2019 in pursuance of notice u/s 143(2) of the Act dated 24.09.2018 by ITO, Ward-66(1), Delhi as is evident from the copy of notice at page 293 of the paper book. The ITO, Ward-66(1), Delhi, had no territorial jurisdiction over the assessee. A coordinate Bench vide ITA No.3581/Del/2023 in S....