TaxTMI 
TaxTMI 
2026 (5) TMI 954
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....lidity of notice issued u/s. 148 the Act for reopening of the assessment by the Ld.AO. 2) The assessment order u/s 147 read with section 144B of the Act dated 29.03.2023 is bad in law. 3) The notice issued u/s 148 of the Act dated 31.03.2022 is bad in law. The Ld. AO has not fulfilled the jurisdictional requirements of section 147 to 151A of the Act. The procedures prescribed under the law have not been followed. 4) The Ld. CIT(A), NFAC has erred in confirming the addition of Rs. 22,76,000/- made by the Ld. AO as unexplained investment u/s 69 r.w.s 115BBE of the Act. 5) The addition made is in gross violation of principles of natural justice as no material has been provided, neither cross examination oppo....
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....essee is an individual and salaried employee who had filed return of income for A.Y. 2018-19. Subsequently, information was received by the department from DDIT/ADIT (Inv.), Mumbai alleging that the assessee had allegedly paid on-money in cash amounting to Rs. 22,76,000/- to GNP Group in connection with purchase of immovable property. Based on such information, notice u/s 148A(b) dated 15/03/2022 was issued calling upon the assessee to explain as to why proceedings u/s 148 of the Act should not be initiated. 3.2. In response thereto, the assessee filed detailed submissions contending that the assessee had purchased Gala No.30 at GNP Galaxy, Ambernath jointly with his wife for total consideration of Rs. 37,00,000/- and the entire consider....
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....AO wherein the assessee had categorically sought copies of statements of Girish Pawar, Kapil Talreja, alleged seized sheets and other incriminating materials forming basis of reopening proceedings. He submitted that without supplying such material, the assessee was deprived of effective opportunity to rebut the allegations. It was submitted that even request for cross examination of concerned persons was ignored. 4.2. The Ld.AR submitted that the assessee had specifically denied payment of any cash/on-money to GNP Group and had explained that the subject property was purchased through registered agreement and entire consideration was paid through banking channels. However, the Ld.AO proceeded merely on the basis of third-party informatio....
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....o tax had escaped assessment and therefore reopening proceedings were validly initiated. He accordingly relied upon the orders of the Ld.AO and Ld.CIT(A). We have perused the submissions advanced by both sides in light of the records placed before this Tribunal. 5. Though the assessee has raised various grounds of appeal, the primary grievance of the assessee is against the validity of proceedings initiated u/s 147/148 of the Act on the ground that the mandatory procedure contemplated u/s 148A of the Act was not complied with and that the reassessment proceedings suffer from gross violation of principles of natural justice. 5.1. From the records placed before us, we observe that the reopening proceedings were initiated on the basis....
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.... that failure to furnish the relied upon material would amount to violation of principles of natural justice. 5.4. We further find that coordinate bench of Mumbai Tribunal in the case of Gedalia Multitrading Pvt. Ltd. v. NFAC/ITO in ITA No.6056/Mum/2025 order dated 06/02/2026 and in the case of Richa Finance & Investment Private Limited v. ITO in ITA No.4252/Mum/2023 order dated 26/11/2025 has also held that reassessment proceedings cannot be sustained where the assessee was not confronted with the underlying material/information forming basis of reopening proceedings. 5.5. In the present case, except making general reference to information received from Investigation Wing, no incriminating material forming basis of reopening was ever....