TaxTMI 
TaxTMI 
2026 (7) TMI 1586
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....edings by issue of a notice under section 148A beyond three years, from the end of the relevant assessment year is barred by limitation. 4. The Order under clause (d) of section 148A of the Act is bad in law as it has been passed by the AO without the requisite authority under section 151 of the Act. 5. The Notice under section 148 of the Act is invalid as the same has not been signed by the AO. 6. The Notice under section 148 of the Act is invalid as it is in violation of Section 151A of the Act and CBDT Notification No. 18/2022 dated 29.03.2022 7. The proceeding under sections 148, 147 and 144 of the Act which based on the invalid notice under section 148 also stand vitiated. 8. The order passed under section 147 r.w.s 144 r.w.s 144B is bad in law as a notice under section 143(2) has not been issued. 9. The learned CIT(A) has erred in law and on facts in passing the orders without providing an opportunity of being heard. 10. The Learned CIT(A) have erred in fact and in law in making the addition of Rs. 8,08,869/- under section 69 of the Act without appreciating the background of the transaction. 11. The Learned CIT(A)....
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....t were initiated. However, the assessee failed to reply to the said notice. Further, notice under section 133(6) of the Act was issued to HDFC Bank and State Bank of India to verify the transactions of the assessee in the immovable property. However, no reply was received from the banks. Therefore, considering the housing loan of INR 45 lakh received by the assessee from the State Bank of India for the purchase of immovable property of INR 56,08,869, the Assessing Officer ("AO"), vide order dated 13/03/2023, passed under section 147 r.w.s. 144 read with section 144B of the Act, concluded that the balance amount of INR 9,08,869 (i.e. INR 56,08,869 - INR 45,00,000) is an unexplained investment under section 69 of the Act for the purchase of immovable property and added the same to the total income of the assessee. Further, the AO, inter alia, also disallowed the HRA claimed by the assessee in the absence of any proof. 4. The learned CIT(A), vide impugned order, granted partial relief to the assessee in respect of the addition on account of the purchase of immovable property and restricted the addition to INR 3 lakh. As regards the disallowance of HRA, the learned CIT(A) affirmed t....
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....sessee did not respond to the said notice, an order under section 148A(d) was passed declaring it to be a fit case for issuance of notice under section 148 of the Act, and the said notice was issued on 29/03/2022. The AO, after considering the submissions of the assessee and the documents placed on record during the assessment proceedings, computed the total income of the assessee at INR 28,42,347. As per the assessee, since the income alleged to have escaped assessment is less than INR 50 lakh, the limitation period for issuance of notice under section 148 of the Act expired on 31/03/2019, and thus the notice issued in the present case under section 148 of the Act on 29/03/2022 is time-barred. 8. At the outset, it is pertinent to note that during the year under consideration, the assessee earned a salary income of INR 19,45,505 and purchased an immovable property of INR 56,65,524. Despite the aforesaid transactions, the assessee did not file his return of income, and thus all these transactions remained unreported by the assessee till proceedings under section 148A of the Act were initiated. It is further pertinent to note that the assessee also did not respond to the show caus....
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....ned, we find that the said plea of the assessee was accepted by the Revenue on the basis of the housing loan certificate submitted by the assessee during the assessment proceedings. However, the AO treated the balance amount of INR 9,08,869 as an unexplained investment, since the assessee could not satisfactorily prove the source of the investment. The said addition was reduced to INR 3 lakh by the learned CIT(A). In the appeal before us, in order to substantiate its submission that the balance amount of INR 9,08,869 was paid by the assessee from his personal savings, bank statements of the assessee's accounts maintained with the HDFC Bank and State Bank of India are placed on record. Further, the assessee has provided the following breakup of payment: - Mode of payment Date Amount Paid To the Seller Other Charges SBI - SB Account Proof attached as annexure 4 12/12/2013 2,00,000 2,00,000 SBI - SB Account Proof attached as annexure 2 11/04/2013 2,86,523 2,86,523 SBI - SB Account 21/04/2014 5,89,927 5,89,927 HDFC - SB Account (TDS under 194IA) Proof attached as annexure 3 18/10/2014 56,655 ....
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....lf of the amount of salary due to the assessee in respect of the relevant period; and (ii) where such accommodation is situate at any other place, two-fifth of the amount of salary due to the assessee in respect of the relevant period, whichever is the least." 15. Therefore, as per the provisions of Rule 2A of the Rules, the exemption in respect of HRA is the least of the actual HRA received from the employer, the rent paid minus 10% of the salary, and 50%/40% of the salary depending upon the location in India. 16. From the pay slip of the assessee for the month of April, 2014, we find that the assessee's basic salary was INR 54,878.48 per month. Further, the basic salary increased to INR 58,994 per month, after an increment in the month of November 2014. We also find that the HRA of INR 27,439 per month granted by the employer to the assessee in April 2014 increased to INR 29,497 from the month of November, 2014. Further, from the declaration issued by the lessor, it is evident that the assessee paid INR 19,000 per month to the lessor from 01/04/2014 to 31/12/2014. 17. In support of the claim of exemption under section 10 of the Act in respect of HRA at INR 1,20,....