2026 (7) TMI 562

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.....01.2026, which in turn arises out of an assessment order passed by the Assessing Officer (AO) u/s 147 of the Act, on 26.03.2024. 2.The assessee has raised the following grounds of appeal: "1. The reassessment order u/s 147 of the Act is bad in law. 2. Reopening of the assessment u/s 147 of the Act is bad in law. 3. The Id. assessing officer has erred in law as well as on facts in making the addition of Rs. 4,33,333/- u/s. 69 r.w.s 115BBE of the Act on the ground of unexplained investment. The Id. CIT(A) has erred in law and on facts in confirming the same." 3. Succinctly, the factual panorama of the case is that assessee before me is an Individual. In this case Return of Income for the year under considerat....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....under consideration on 31/03/2023 declaring total income of Rs. 3,96,850/-. Thereafter, a notice u/s 143(2) of the Income-tax Act, 1961 was issued and delivered through email on 26/06/2023. 4. Thereafter, assessing officer issued a show cause notice to the assessee to explain the 'on-money' of Rs. 4,33,333/-. In response to the show cause notice, the assessee submitted its reply stating that it did not make any payment on account of "on-money" and also requested the assessing officer to provide the opportunity of cross examination in respect of the statement of Shri Girish Vanjani. The assessee also challenges the initiation of reopening. However, assessing officer noted that it is evident that the original return was processed u/s 143(1....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....peal of the assessee may be allowed, partly. On the other hand, Ld. DR for the revenue did not raise any objection, if an adhoc estimated addition may be made in the hands of the assessee, however, learned DR stated that to protect the interest of the revenue an estimated addition may be made at the rate of 20% of 'on-money'. 7. I have considered the submissions of both the parties and note that Ld. Counsel for the assessee, argued that the total addition made by the assessing officer in the hands of the assessee, is only Rs. 4,33,333/-, therefore, considering the smallness of the amount, an adhoc estimated addition made in the hands of the assessee. The learned DR for the revenue, also fairly agreed that to protect the interest of the r....