NARAYANANAND BRAMHCHARI,DEVBHUMI DWARKA vs. ITO WD 1(4), DWARKA, JAMNAGAR

PDF · subscribers
ITA 441/RJT/2025Status: DisposedITAT Rajkot09 April 2026AY 2019-206 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found that the assessee had not sufficiently proved the source and creditworthiness of funds received as loans and gifts. However, considering the additional evidence filed and the circumstances, the Tribunal decided to grant one more opportunity to the assessee.

What were the facts?

The assessee's case was reopened under Section 147 for AY 2019-20 due to alleged unexplained investment in property. The assessee initially claimed payments were made through banking channels for Rs. 61,45,000 and denied paying Rs. 21,00,000 in cash. However, the lower authorities confirmed the additions.

What were the issues?

Whether the additions made by the AO and confirmed by the CIT(A) on account of unexplained investment in property are justified. Whether the assessee has provided sufficient evidence to explain the source of funds.

Which sections of the Income-tax Act were involved?

Section 147,Section 69,Section 115BBE,Section 148,Section 142(1),Section 143(2)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, Rajkot Bench, Rajkot

Before: Dr. Arjun Lal Saini & Dr. Dinesh Mohan Sinha

For Appellant: Shri Prashant Shrivastav, Ld. AR, Shri Abhimanyu Singh Yadav, Ld. Sr. DR
Hearing: 17/03/2026

आदेश / ORDER Per, Dr. Dinesh Mohan Sinha, JM: Captioned appeal filed by the assessee, pertaining to Assessment Year (AY) 2019-20, is directed against the order passed by the Learned Commissioner of Income Tax(Appeal), in short “the Ld. CIT(A)”], dated 10.06.2025, which in turn arises out of an assessment order passed by Assessing Officer (in short ‘the AO”) u/s 147 of the Income Tax Act, 1961 (hereinafter referred to as “the Act”), vide order dated 29.03.2024. 2. Grounds of appeal raised by the assessee, are as follows: “1. The Ld CIT(A) has erred in confirming the addition of Rs. 21,00,000/-u/s 69 r.w.s 115BBE alleging unexplained investment assessed by the AO 2. The Ld CIT(A) has erred in confirming the addition of Rs. 61,45,000/- u/s 69 r.w.s 115BBE alleging unexplained investment assessed by the AO

ITA No. 441/Rjt/2025 Dff Narayanand Bramhchari

3.

Your appellant prays for the liberty to add, DELETE, amend, edit OR manipulate any of the grounds of appeal during the course of appellate proceedings”

3.

Brief facts of the case that the assessee has not filed his original return of Income for the A.Y. 2019-20. A search and seized action were conducted on Omaxe Group which is one of the leading builders of the Country having wide spread presence across 27 cities in 8 states. The group was founded in 1987 by Sh. Rohtas Goel. The flagship company of the group is M/s Omaxe Limited. The group undertakes its projects through subsidiaries owned by Omaxe Ltd. More than 150 companies are controlled/ managed by the group. A search action under section 132 of the Income Tax Act, 1961 was carried out at various office and residential premises in the case of Omaxe Group on 14.03.2022. As a part of the search, key persons/ employees of the group were also covered. As per the information available with this office, it is gathered that the assessee has paid on-money/cash of Rs.21,00,000/- to Omaxe Eternity towards advance payment for purchasing/booking a piece of immovable property. Considering the fact that the income chargeable to tax has escaped the assessment within the meaning of section 147 of the I.T. Act, 1961 for the year under consideration, the case of the assessee was reopened u/s. 147 of the IT Act, 1961 after following due procedure laid down in the Act/Rules. Consequently, the notice u/s. 148 of the IT Act, 1961 was issued to the assessee on 31/03/2023 and duly served upon the assessee through RPAD & mail at naraynanand@gmail.com. 2. In response to the notice issued u/s. the assessee filed the ITR on 26-07-2023 declaring total income at Rs.2,32,670/-. Meanwhile, notice u/s. 142(1) of the Act was issued to the assessee on 28-06-2023 requesting him to comply by 05-07-2023. In response to notice issued dated 28-06-2023, the assessee replied on 26-07- 2023 and provided the partial submission. Further, the assessee has stated

Page 2 of 6

ITA No. 441/Rjt/2025 Dff Narayanand Bramhchari that he has not paid any on-money/cash of Rs.21,00,000/- towards purchasing property in Omaxe Eternity. He accepted to had paid Rs.61,45,000/- for the same during the year under consideration through banking channel. The reply of the assessee has been perused but not found satisfactory. Thereafter notice u/s. 143(2) of the Act was issued to the assessee along with the questionnaire requesting him to comply on or before 29-09-2023. In response thereto, the assessee asked for adjournment. Since, no response has been received from the assessee's side, one more notice u/s. 142(1) was issued to the assessee on 26-02-2024 asking to provide the details contained therein by 03-03-2024. The notice was served through RPAD and mailed to naraynanand@gmail.com & mohinitraders2017@gmail.com. However, the notice was returned unserved with the remark 'Refused'.

4.

Considering the information on record, final opportunity was provided to the assessee in form of issuance of Show cause notice dated 06/03/2024 requiring him to comply by 11.03.2024. 5. That the assessee filed an appeal against the order of the AO, before the Ld. CIT(A) that the Ld. CIT(A) has dismissed the appeal of the assessee, observing as follows : “9. It is absolutely clear that appellant has no reasonable and acceptable explanation about the source of the amount of Rs. 82,45,000/- which was undisputedly paid to the builder Omaxe Group. I do not find any fault in the AO's action of adding the same u/s. 69 r.w.s. 115BBE. The appeal is dismissed.”

6.

That the assessee filed an appeal against the impugned order dated 10.06.2025 before this Tribunal.

Page 3 of 6

ITA No. 441/Rjt/2025 Dff Narayanand Bramhchari a. During the course of hearing, the Ld. AR for the assessee prayed that one more opportunity may kindly be given to the assessee to explain the case before lower authorities. b. On the other hand, the Ld. DR of the revenue relied on the order of the Ld. CIT(A). 7. We have heard, both the parties and perused the material available on record. We note that the case of the revenue is that the assesse has invested in property amounting to: Cash amount of Rs.21,00,000/- and Bank of Rs.61,45,000/-. In the submission/ documents of the appellant there was no denial of this fact that these payments have been made towards purchase of property. The only issue is whether these amounts are from the explained source of income of the appellant? The appellant had tried to explain the source through following entries: (i) Rs. 60,000/- received from Khushboo Chaurasia. (ii) Rs. 50,000/- received from Kiran Joshi (iii) 4 Gift deeds from following persons in following manner: a. Shri Suresh Tiwari (Father) Rs.5,50,000/- through Banking, Rs.1,50,000/- in Cash; Total: Rs.7,00,000/- b. Shri Manoj Kumar Tiwari (Elder Brother) Rs.3,00,000/- through Banking, Rs.1,50,000/- in Cash; Total: Rs.4,50,000/- c. Dhanoj Tiwari (Younger Brother) Rs.1,00,000/- through Banking, Rs.1,50,000/- in Cash; Total: Rs.2,50,000/- d. Smt. Pushpa Tiwari (Sister in law)

Page 4 of 6

ITA No. 441/Rjt/2025 Dff Narayanand Bramhchari Rs.2,50,000/- through Banking, Rs.1,50,000/- in Cash; Total: Rs.4,00,000/-

However, the assesse has not proved the creditworthiness of the above parties by supporting documents in respect of loan and gift. During the appellate and remand report proceedings, assessee has provided the source of Rs.20,00,000/- only; remaining is still not explained. Further, out of these 20 lakh, Rs.6,00,000/- is received in form of cash. The assessee has failed to prove the creditworthiness of persons from whom the gift/loan taken during the relevant year. The assessee has failed to prove the genuineness of the transaction by not giving the Bank statements of the party. Bank statements of only Shri Dhanoj Tiwari and Smt. Pushpa Tiwari was provided wherein immediate cash deposit was seen before transferring the same amount to the assessee's account in form of gift."

8.

The appellant has prayed for an opportunity to explain the source of payment and credit worthiness of the parties from whom loan/gift has been taken. Before us, the assesse has filed additional evidence in the form of affidavit duly signed by Brahmchari Narayanand filed, stating that assesse purchased a plot No.7 from M/s Omaxed Ltd. In the project Omaxe Eternity Vrindavan located at Vrindavan. The assesse has filed a copy of statement issued by Omaxe Ltd. on 06.03.2026, therein the receipt details has been provided, which established that all payment were given through banking channel. Considering the facts and circumstances of the case, we are of the view that one more opportunity should be given to the assessee to present the case before the AO. Therefore the matter remand back to the file of the AO with a direction that the case of the assesse be kindly adjudicate the matter in accordance with law, after giving due opportunity of being heard to the assessee. The Ld. AO will afford opportunity of being

Page 5 of 6

ITA No. 441/Rjt/2025 Dff Narayanand Bramhchari heard to the assessee before deciding the issue. The assessee will also be at liberty to file further evidence to substantiate it’s claim.

9.

In the result, the appeal of the assessee is allowed, for statistical purposes.

Order is pronounced in the open Court on 09/04/2026.

Sd/- Sd/- [ Dr. Arjun Lal Saini ] [ Dr. Dinesh Mohan Sinha ] Accountant Member Judicial Member

//True Copy// Rajkot �दनांक/ Date: 09/04/2026 Copy of the Order forwarded to 1. The Assessee 2. The Respondent 3. The CIT(A) 4. Pr. CIT 5. DR/AR, ITAT, Rajkot By Order 6. Guard File

Assistant Registrar/Sr. PS/P.S. ITAT, Rajkot

Page 6 of 6

More judgments on Section 147

All 49,210 judgments and leading authorities on Section 147 →

Recent GST High Court judgments

Search GST case law →