PESHURAM LILARAM MULCHANDANI,VERAVAL vs. THE INCOME TAX OFFICER, VERAVAL

ITA 245/RJT/2026Status: DisposedITAT Rajkot31 August 2026AY 2013-1421 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the reassessment proceedings were invalid due to lack of proper approval under Section 151 and violation of principles of natural justice by not providing an opportunity for cross-examination. Consequently, the reassessment order was quashed.

What were the facts?

The assessee's case was selected for reassessment based on information from a third-party search and allegations of bogus financial transactions. The Assessing Officer added Rs. 1,11,97,310/- as unexplained unsecured loans. The CIT(A) dismissed the appeal for non-prosecution without adjudicating on merits.

What were the issues?

Whether the reassessment proceedings initiated under Section 147 were valid without proper approval under Section 151 and if the denial of cross-examination violated natural justice.

Which sections of the Income-tax Act were involved?

Section 147,Section 151,Section 148,Section 142(1),Section 68,Section 153C,Section 250(6)

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances
आयकर अपीलीय अिधकरण, राजकोट "यायपीठ, राजकोट। In The Income Tax Appellate Tribunal, Rajkot Bench, Rajkot Before Dr. Arjun Lal Saini, Accountant Member And Shri Sonjoy Sarma, Judicial Member आयकरअपीलसं./ITA No. 245/Rjt/2026 [ "नधा"रणवष"/Assessment Year: 2013-14 ] Peshuram Lilaram Mulchandani The Income Tax Officer 2nd Floor, Tower Chowk Veraval Ward - 4, Junagadh, Veraval, Vs. Birla Sun Life Insurance (Gujarat) 362265 Company Ltd., Sadguru Arcade, Veraval (Gujarat) 362265 "थायीलेखासं./जीआइआरसं./PAN/GIR No.: AOUPM6150R (अपीलाथ"/Appellant) (""यथ"/Respondent) Appellant by : Shri R. B. Shah, Ld. AR Respondent by : Shri Ganesh Iyer, Ld. Sr. DR Date of Hearing : 06/07/2026 31/08/2026 Date of Pronouncement :

:: ORDER :: Dr. Arjun Lal Saini, AM: Captioned appeal filed by the assessee, pertaining to assessment year (AY) 2013-14, is directed against the order under section 250 of the Income- tax Act, 1961 (hereinafter referred to as ‘the Act’) passed by the National Faceless Appeal Centre (NAC) Delhi/Commissioner of Income-tax (Appeals) [in short ‘NFAC/Ld.CIT(A)’], dated 11.12.2025, which in turn arises out of an assessment order passed by the Assessing Officer u/s 147 of the Act, dated 31.03.2

The order continues below.

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