2026 (1) TMI 1538

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....the relevant year. Notice under section 148 was issued on 29.07.2022, in response to which the assessee filed return of income declaring the same income as originally returned. 3. During the reassessment proceedings, the Assessing Officer made the following additions: 1. Rs. 1,26,730/- under section 56(2)(vii)(b) on account of difference between stamp duty valuation and agreement value of immovable property. 2. Rs. 7,401/- on account of difference in savings bank interest. 3. Rs. 80,639/- on account of alleged omission of Long Term Capital Gain. 4. Rs. 17,789/- on account of alleged omission of interest income. The total income was assessed at Rs. 15,91,073/-. 4. The assessee carried the matter in appeal before the CIT(A). The learned CIT(A) issued notices under section 250 on various dates. As recorded in the appellate order, the assessee did not file written submissions during appellate proceedings. The learned CIT(A) proceeded to dispose of the appeal on merits and confirmed all the additions made by the Assessing Officer. 5. Aggrieved by the order of the CIT(A), the assessee is in appeal before us raising following grounds: ....

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....the CIT while filing the Appeal, the assessee didn't file any reply since the document already submitted at the time of filing the Appeal and assessee didn't want to file any additional document. 8. Only on the receipt of the Order dated 09.10.2025 passed by the CIT the assessee was shocked to learn that the CIT didn't receive any documents. The above misunderstanding is totally technical error and not intentional, the Assessee has all the documents to prove its genuineness and therefore being aggrieved with the Order filed the present Appeal. In the above circumstances considering peculiar situation, true facts and applicable provisions of Law, and in the interest of natural Justice, your appellant prays for consideration of the detailed grounds of appeal and contentions attached herewith, while reserving his right to add, amend, delete or replace any point or ground at or before the time of final hearing and prays for such other relief as may be available to him according to law. 6. The learned Authorised Representative reiterated the facts and placed reliance on the ground-wise explanation furnished in the paper book. It was submitted that the ad....

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....stainable. 11. Respectfully following the ratio laid down by the co-ordinate Bench of the Tribunal in Sri Sandeep Patil v. ITO, and in view of the undisputed fact that the difference between the agreement value and stamp duty valuation is only 4.87 percent, we hold that no addition is warranted under section 56(2)(vii)(b) of the Act. Accordingly, the addition of Rs. 1,26,730/- is directed to be deleted. 12. Next issue is relating to addition of difference in savings bank interest amounting to Rs. 7,401/-The Assessing Officer noted interest credited in the bank statement and compared the same with the interest income declared in the return. According to the Assessing Officer, there was a difference of Rs. 7,401/-, which was added. As per the explanatory chart placed by the assessee, the assessee had received total savings bank interest of Rs. 17,062/-.Interest expenditure of Rs. 14,195/- was incurred and net interest income of Rs. 9,661/- was offered to tax. The Assessing Officer ignored the netting of interest and made the addition merely on the basis of gross figures. 13. The computation placed on record clearly shows that interest income was offered after adjusting inter....

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....already been offered to tax in A.Y. 2016-17, as reflected in Form 26AS for that year. It was further explained that the remaining amount of Rs. 6,116/-, received on 11.07.2016, represented interest on loan from Jainam Financial Services, which was also disclosed under the head "Income from Other Sources" in the computation of income filed along with the return, after deduction of tax at source. The assessee thus contended that the entire interest income stood duly accounted for and taxed, and that the proposed addition would result in double taxation of the same income. 17. The Assessing Officer, however, rejected the explanation of the assessee on the ground that, on perusal of the bank statement and capital account, interest receipts of Rs. 17,789/- were found credited during the year under consideration and the same were not disclosed in the return of income for A.Y. 2017-18. The Assessing Officer further observed that the revised computation furnished by the assessee during assessment proceedings was an afterthought and, accordingly, proceeded to make the addition as proposed in the show cause notice. The learned CIT(A) confirmed the addition without examining the factual cl....