2026 (10) TMI 176

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....rder No: ITBA/NFAC/S/250/2025-26/1085445372(1) arising out of the assessment order dated 28.03.2023 u/s. 147 r.w.s 144B of the Income Tax Act, 1961 (hereinafter referred to as 'the Act') passed by NFAC Delhi for AY: 2018-19. 2. Heard and perused the records. The return of assessee was filed u/s. 139 declaring total income of Rs. 8,88,600/- and prior to the proceedings assessing officer had issued notice u/s. 133(6) of the Act dated 11.03.2022 by which information was sought with regard to investment in immovable property by the assessee which was responded by letter dated 14.03.2022 along with documents including computation of income, bank statements, memorandum of association, sales deed and the ledger of vendor parties. Thereafter, re....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....r under clause (d) of Section 148A of the Act it is observed by ld. AO that assessee had failed to explain the source of investment as out of small profit of the company invest was made and merely showing assets in its ITR does not make the transaction authentic, however, we find that what is the nature of asset itself is not reflected. 4. These facts and the content or information coming out of all these facts would not at all constitute information so as to justify allege that the same provide a live link to the reasons for recording a satisfaction of escapement of income to issue show cause notice u/s. 148A(b) of the Act or the order passed u/s. 148A(d) of the Act. 5. Though ld. DR has vehemently defended the proposition laid down ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ew, was not sufficient for commencement of the reassessment proceeding u/s. 147 r.w.s148 of the Act." (Emphasis Supplied) 7. The aforesaid proposition stands authoritatively settled by the Hon'ble jurisdictional Delhi High Court in the matter of Pradyot K. Misra v. ACIT [2023] 157 taxmann.com 253 (Delhi), wherein the Hon'ble Court held that reassessment founded substantially on a TEP, without furnishing the underlying material to the Assessee or affording an effective opportunity to rebut the same, is unsustainable in law. Similar view has been reiterated by the co-ordinate bench in the matter of Shri Ashok Arora us ITO, ITA No.1894/Del./2012, relevant findings for which are as under: "10. Now, adverting to the case a....