2026 (5) TMI 731

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....ion 144B of the Income Tax Act, 1961 dated 30.03.2022 relevant to the Assessment Year 2013-14. 2. The Grounds of appeal raised by the assessee are as under: "1. That, the Ld. CIT(A) has wrongly confirmed the reopening of assessment u/s 147 of the I.T. Act, 1961 and wrongly passed the order u/s 147 rws 144 of the I.T. Act, 1961. 2. That, the Ld. AO has confirmed the addition amounting to Rs. 8,84,576/-on account of unexplained investment u/s 69 of the I.T. Act, 1961. 3. That, the Ld. AO has wrongly confirmed the application of the provisions of section 115BBE of the I.T. Act, 1961. 4. That, the Ld. AO has wrongly confirmed initiation of penalty proceedings u/s 271(1)(b), 271(1)(c), 271F of the I.T. Act,....

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....esting to make compliance on or before 25.09.2020. 4. Thereafter, the assessing officer noted that in spite of giving ample opportunity, the assessee failed to account for undisclosed income by filing return of income in response to the notice u/s 148 of IT Act issued in assessee's case. Therefore, considering the time barring nature of the proceedings, the assessing officer has no option but to conclude the proceedings with whatever details available on record. Thus, assessing officer note that assessee has made investment of an amount of Rs. 8,84,576/- for purchase of shares and source of such investment is remained to be explained from the side of the assessee. Hence, in absence of explanation and submission regarding investment made ....

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....e parties and perused the materials available on record. I find that the assessee has submitted all the possible evidences before the lower authorities to explain the source of purchase shares, and the fact that the transaction was done through banking channel and all the bills and invoices are on record and there is no evidences that these transactions involve cash payment. Besides, there is no evidence that any party has received the cash in lieu of the cheques. I note that it is not a case of penny stock, the only contention of the assessing officer was that assessee has failed to file sufficient evidences to explain the source of purchase of shares of Rs. 8,84,576/-, hence, assessing officer made addition. I note that since Ld. DR for t....