TaxTMI 
TaxTMI 
2026 (3) TMI 1741
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....e. The case of the assessee was thus reopened u/s 147 of the Act by issue of notice u/s 148 on 27.03.2023. The assessee did not file his return of income in response to the notice u/s 148 of the Act. Notices u/s 142(1) as well as the show cause letters also remained un-complied with by the assessee. The Ld. AO therefore proceeded to complete the assessment ex-parte by making an addition of Rs. 40,99,000/- to the income of the assessee u/s 69 r.w.s. 115BBE of the Act vide his order dated 29.12.2023 passed u/s 147 r.w.s. 144 r.w.s. 144B of the Act. 3. Aggrieved, the assessee filed an appeal before the Ld. CIT(A)/NFAC who dismissed the appeal of the assessee and endorsed the findings of the Ld. AO by observing as under : "5.6 From the proper appreciation and evaluation of the findings of the AO with regards to addition and contention of the appellant in his reply/submission furnished during the appellate proceedings and upon careful examination of the facts and evidence on record. The addition of Rs. 40,99,000 as unexplained investment under sections 69 and 115BBE by the Assessing Officer is fully justified based on cogent evidence and settled legal principles. The AO reli....
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....CIT v. Raj K. Lakhotia (1998) 233 ITR 393 (SC). In sum, the AO's addition is grounded on reliable material, correct application of legal principles, and the assessee's failure to discharge the onus of explanation. The addition of Rs. 40,99,000 as unexplained investment is fully sustainable in law and merits confirmation. This finding aligns with the concrete judicial precedents safeguarding revenue's power to tax escaped income, thereby protecting the fiscal fabric from erosion due to concealment. The addition of Rs.40,99,000 as unexplained investment by the Assessing Officer under sections 69 and 115BBE is fully justified based on substantial material and settled legal principles. The AO relied on credible evidence derived from a survey conducted on third parties, where loose papers indicating payments aggregating Rs. 81,00,000 linked to the appellant for property purchase were found. Although the registered sale deed disclosed only Rs. 40,00,000, the appellant has failed to satisfactorily explain this discrepancy or establish the source, resulting in unexplained investment. Thus, the addition by the AO is lawfully sustainable, based on cogent facts and authoritative j....
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.... was jointly purchased by four co-owners, that the registered sale deed and bank statements clearly evidence cheque payments corresponding to the appellant's share, that there was no cash movement whatsoever, and that Form 26AS itself reflects the appellant's correct share of the purchase value as reported by the Joint Sub-Registrar, Haveli. (7) The AO has reopened the case on the basis of information received from Central Circle without conducting any enquiry u/s 148A(a) of Act, thereby acting on borrowed satisfaction, contrary to law laid down. That the reassessment proceedings are based on borrowed satisfaction derived from survey operations conducted on unrelated entities, without any direct link to the appellant. (8) That the reliance placed on survey operation on M/s Shreepad Developers without giving opportunity of cross-examination to the appellant violates principles of natural justice. No specific document, material, or statement mentioning the name of the appellant has been brought on record or shared before initiating reassessment. (9) The AO failed to supply the alleged survey evidence (loose papers) with the 148A(b) notice, in violat....
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....ss Assessment Scheme dated 28.12.2021 (supra). Para 12 of the said CBDT Notification reads as under : "12. No personal appearance in the Centres or Units.--(1) A person shall not be required to appear either personally or through authorised representative in connection with any proceedings under this Scheme before the income-tax authority at the National Faceless Appeal Centre or appeal unit set up under this Scheme. (2) The appellant or his authorised representative, as the case may be, may request for personal hearing so as to make his oral submissions or present his case before the Commissioner (Appeals), through the National Faceless Appeal Centre, under this Scheme. (3) The concerned Commissioner (Appeals) shall allow the request for personal hearing and communicate the date and time of hearing to the appellant through the National Faceless Appeal Centre. (4) Such hearing shall be conducted through video conferencing or video telephony, including use of any telecommunication application software which supports video conferencing or video telephony, to the extent technologically feasible, in accordance with the procedure laid down by the Boar....
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....aring before the ld. CIT(A). However, it seems from the order of ld. CIT(A) that no opportunity of video conference was provided by ld. CIT(A). 4. We would like to refer to the Hon'ble Madras High Court's decision in the case of C. Chellamuthu Vs. Principal Commissioner[NFAC] [2024] 158 taxmann.com 132 wherein the Hon'ble Madras High Court held that providing opportunity through video conferencing once asked by assessee is mandatory. The relevant portion of the Hon'ble Madras High Court observations are reproduced as under : "In the said Email communication is clearly mentioned that since it is high pitch assessment the petitioner has sought video conference hearing. Therefore this Court is of the considered opinion that it is clearly violation of principles of natural justice." 4.1 Similarly, Hon'ble Bombay High Court in the case of Pico Capital (P.) Ltd., Vs. DCIT [2025] 170 taxmann.com 638 (Bombay) dated 07.01.2025 has held as under : "9. In the additional affidavit filed by the Respondents, the contentions based on the failure of natural justice are dealt with in paragraph 6(e), which reads as follows: - "6(e). In the March ending ti....