TaxTMI 
TaxTMI 
2026 (9) TMI 1700
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.... out of assessment order dated 10.05.2023 passed u/s 147 r.w.s. 144 r.w.s. 144B of the Act pertaining to Assessment Year 2013-14. 2. Brief facts of the case are that the assessee is a company, filed its return of income on 13.09.2013, declaring loss of INR 16,246/-. A search and seizure action was carried out on 16.10.2020 u/s 132 of the Act at the premises of Shri Navin Mahipal wherein one Sale Deed was found according to which the assessee has purchased a property situated at Village-Budhena, Faridabad for a total consideration of INR 3,90,41,875/- and further paid registration charges of INR 27,33,000/-. Accordingly, reassessment proceedings were initiated and notice u/s 148 was issued 19.04.2021. Thereafter, the said notice was treat....
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....pleted without complying with legal requirements of the provisions of section 147/148/151/149/148A of the Income Tax Act therefore such assessment is void ab initio and liable to be quashed. 2) The Ld. CIT(A) has erred both in law and circumstances of the cases in upholding the addition of Rs. 4,17,74,875/- holding the payment made for acquisition of immovable property as unexplained investment within meaning of sec 69 of the IT Act ignoring the fact that the property in question has been duly recorded in books of account and therefore the above provision has no application in present case. 3) The Ld. CIT(A) has erred both in law and circumstances of the cases in upholding the addition of Rs. 4,17,74,875/- holding the paym....
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....sed u/s 148A(b) of the Act on the issue other than the issue on which the show cause notice was issued. Ld.AR further submit that the subject property was duly declared in the Balance Sheet filled in the return of income and thus was available with the AO and therefore, it cannot be said that the said property was not disclosed. Ld.AR submits that merely for making verification, the case was re-opened. He placed reliance on the judgement of Hon'ble Delhi High Court in the case of Catchy Prop-Build Pvt.Ltd. vs ACIT & Anr. reported in [2022] (10) TMI 771 (Del.) & Usha Rani Girdhar vs ITO in WP (C) 16090/222 (Del.) wherein it is held that if the foundational allegation made in the notice issued u/s 148A(b) of the Act is not matching with the o....
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.... the provision has rightly been invoked by the AO and requested for the confirmation of the reassessment proceedings. 7. Heard the contentions of both parties at length and perused the material available on record. From the perusal of the notice issued u/s 148A(b) dated 26.05.2022, it is observed that the AO was show-caused the assessee to explain the transactions of purchase of land for INR 3,90,41,875/- which was found recorded in the books of accounts of the assessee. Thereafter in the order passed u/s 148A(d) of the Act, it was observed by the AO that investment in the said property was made out of the funds received from the holding company M/s Emroyal Shiksha P. Ltd. however, the source of such funds remained unexplained and theref....