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Income Tax Appellate Tribunal, DELHI BENCH: “SMC” NEW DELHI
Before: SHRI SATBEER SINGH GODARA
Date of hearing 03.06.2025 Date of pronouncement 03.06.2025 ORDER This assessee’s appeal for assessment year 2012-13, arises against the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre [in short, the “CIT(A)/NFAC”], Delhi’s DIN and order no. ITBA/NFAC/S/250/2023-24/10581411208(1), dated 22.11.2023 involving proceedings under section 144 of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’). Case called twice. None appears at the assessee’s best. He is accordingly proceeded ex-parte.
It next transpires during the course of hearing with the able assistance coming from the Revenue side that both the learned lower authorities have invoked section 50C r.w.s. 144of the Act to hold the assessee’s investment in an immovable property of Rs.30,18,750/-; as unexplained, in the course of assessment framed on 21.11.2019 and upheld in the lower appellate discussion.
That being the clinching case, this tribunal is of the considered view that both the learned lower authorities’ impugned action invoking section 50C for the purposes of making unexplained investment addition is not sustainable, as the same is applied only in case of sale/transfer of land and building than an investment made therein. That being the case, the impugned addition is deleted for the precise reason alone.