DEVANG JITENDRA MASHRU,MUMBAI vs. INCOME TAX OFFICER -19(1)(4), MUMBAI

O R D E R Per Padmavathy S (AM): This appeal is against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre [in short CIT(A)] dated 26.05.2023 for assessment year 2010-11. 2. The assessee raised the following grounds of appeal- 2 ITA 2500/Mum/2023 Devang Jitendra Mashru "i. The order dated 26.05.2023 bearing no. ITBA/NFAC/S/250/2023-24/1053207367(1) by the CIT(A), National Faceless Appeal Centre, Delhi is arbitrary, against natural justice, unlawful, against the provision of Income Tax Act, 1961 and therefore liable to be quashed. ii. In the circumstances and in law, CIT(A) has facts and of the case the Learned erred in confirming the addition of Rs. 37,93,OOO/-confirming the addition of Rs. 37,93,000/- on account of unexplained income on account of sale of immovable property. iii. In the facts and circumstances of the case and in law, the Learned CIT(A) has erred in confirming the addition of Rs. 6,36,961/- on account of purchase of share as unexplained investment u/s 69 of the Act."

3. The assessee is an individual. For AY 2010-11, the assessee did not file the return of income. The assessing officer, based on information from NMS module noticed that the assessee has sold immovable property during the year under consideration. The assessing officer therefore reopened the assessment under section 147 of the Income Tax Act (the Act) and accordingly issued a notice under section 148 of the Act to the assessee. The assessee did not respond to the said notice and the subsequent notices issued under section 142(1) of the Act. Therefore the assessing officer completed the assessment under section 144 r.w.s.147 of the Act in which the assessing officer made an addition of Rs.37,93,000/- as undisclosed income pertaining to sale of property and also an addition under section 69 of the Act towards purchase and sale of shares amounting to Rs.6,36,961.

4. Aggrieved the assessee filed an appeal before the CIT(A). In the statement of facts and grounds of appeal before the CIT(A), the assessee has stated that the property that is sold does not belong to the assessee and that the 'net income from the share transaction is below the taxable limit and hence no return was filed.