TaxTMI 
TaxTMI 
2026 (3) TMI 1172
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.... section 250 of the Income Tax Act, 1961 ('Act'). 2. The assessee has raised following grounds of appeal: - "1. That under the facts and in the circumstances of the case, the Ld. CIT(A) erred in confirming addition of a sum of Rs. 3,57,12,724/- for the money deposited in bank holding the same to be unexplained investment in terms of section 69 read with section 115BBE of the Income Tax Act, 1961. The addition is unjustified and need to be deleted. 2. That under the facts and in the circumstances of the case, the Ld.CIT(A) erred in confirming addition of a sum of Rs. 42,83,870/- for the interest received from State Bank of India and Chhattisgarh State Power Distribution Company Limited in terms of section 69 read....
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....Decision: 6.1.3. The Assessment Order, Grounds of Appeal, the Statement of Facts, Submission of the appellant, Remand Report, documents submitted along with Remand Report and law in this regard is considered. 6.1.4. The appellant contended that reopening was bad in law. However, information from NMS portal is a valid tangible material which clearly indicated escapement of income in the form of large time deposits and corresponding interest. The Ld.AO duly recorded reasons and obtained approval before issuing notice u/s 148. Multiple statutory notices were issued but the appellant remained non-compliant. 6.1.5. In view of judicial precedents (Raymond Woollen Mills Ltd. v. ITO [236 ITR 34 (SC)], the Supreme Court he....
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.... in the form of time deposit nor any explanation or supporting documents has been furnished, therefore, sources and nature of the time deposit of Rs. 3,57,12,724/- and interest received of Rs. 42,83,870/- remained unexplained. Section 69 clearly mandates that where the appellant offers no explanation about nature and source of investment, the same shall be deemed to be income. In the present case, the appellant not only failed to file ROI but also did not respond to repeated notices including show cause u/s 144. The AO was therefore justified in treating the deposits as unexplained investments and interest as taxable income. The provisions of section 115BBE also apply, prescribing higher rate of tax. The remand report furt....
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.... 4. At the outset, Ms. Swati Khandelwal, CA, learned Authorized Representative of the assessee drew our attention to the fact that the Ld. AO vide orders dated 19.03.2023 and 23.03.2024 passed under section 148A(d) of the Act with the approval of the Ld. Principal Commissioner of Income Tax dropped the proceedings of AYs 2019-20 and 2020-21 respectively. The relevant part of the order dated 23.03.2024 passed under section 148A(d) of the Act for AY 2020-21 reads as under: "5.1 Reference is further drawn on Chapter III of the Income Tax Act, 1961: "Incomes Which Do Not Form Part of Total Income". As per the provisions defined under sub-section (20) of section 10 of the Income Tax Act which reads as under: The income of a lo....
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....19-20 relevant to A.Y. 2020-21 is treated as exempt under section 10(20) of the Income Tax Act .. Therefore, the case of the assessee is Not found to be a fit for issuance of notice u/s 148 of the Act for A. Y. 2020-21. Since, in this case, less than 3 years have elapsed from the end of the relevant assessment year i.e. A.Y. 2020-21, therefore, this order u/s 148A(d) of the Act is being passed after taking necessary approval from the Specified Authority under section 151(i) of the Act i.e. the Hon'ble Principal Commissioner of Income Tax-1, Raipur within limitation date 31.03.2024." 4.1 In view of orders dated 19.03.2023 and 23.03.2024 passed under section 148A(d) of the Act wherein the similar proceedings initiated in subse....