ROYAL CONSTRUCTION & ASSOCIATES,NAGPUR vs. DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE 2(2)-NAGPUR, NAGPUR

ITA 681/NAG/2025Status: DisposedITAT Nagpur31 August 2026AY 2016-1717 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the notice issued under Section 148 was invalid as it was issued beyond the prescribed time limit under Section 149(1)(b), as the estimated escaped income was below the threshold. The Tribunal also noted that the addition was made solely on uncorroborated material.

What were the facts?

The assessee, a real estate firm, was subject to reassessment proceedings based on information found during a search action. The Assessing Officer (AO) added Rs. 1.37 crores as 'on money' received from flat sales, treating it as unexplained money under Section 69A. The Commissioner (Appeals) partly allowed the appeal, directing the addition to be treated as business income instead of unexplained money.

What were the issues?

Whether the reassessment notice under Section 148 was validly issued within the time limits prescribed by Section 149(1)(b), and whether the addition was substantiated by corroborative evidence.

Which sections of the Income-tax Act were involved?

Section 147,Section 148,Section 149(1)(b),Section 69A,Section 115BBE,Section 234A,Section 234B,Section 234C

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, NAGPUR BENCH :: NAGPUR

For Appellant: Shri K.P. Dewani, Advocate
For Respondent: Shri Pankaj Kumar, CIT-DR
Hearing: 16.06.2026Pronounced: 31.08.2026

PER KHETTRA MOHAN ROY, AM:

This appeal filed by the assessee is directed against the order of Learned Commissioner of Income Tax (Appeals)-3, Nagpur (for short, “CIT(A)”), dated 22/09/2025 passed under section 250 of the Income Tax Act, 1961 (for short, “Act”) which is emanating from the assessment order dated 28.03.2024 passed u/s. 147of the Act, for the Assessment Year (AY) 2016-17. 2. Assessee has raised the following grounds of appeal: “1) The order passed by Commissioner of Income Tax (Appeals)- 3, Nagpur is without providing reasonable opportunity of being heard and is in violation of principles of natural justice. Dismissal of grounds is unjustified and unwarranted. 2) The order passed by CIT(A)-

The order continues below.

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