SANTOSH MOHAN PATOLE,MUMBAI vs. INCOME TAX OFFICER - 34(3)(2), MUMBAI, MUMBAI

ITA 5810/MUM/2024Status: DisposedITAT Mumbai18 February 2025AY 2013-14Bench: SMT. BEENA PILLAI ( (Judicial Member)7 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that while the CIT(A) could have verified the remaining Rs. 30 lacs which was part of the same financial transaction, the addition made by the CIT(A) was not permissible without issuing a notice under Section 251(2) of the Act. The CIT(A) did not follow the due process of law by not issuing the required notice before enhancing the assessment.

What were the facts?

The assessee did not file an Income Tax Return for AY 2013-14. Based on information regarding a property purchase, the AO initiated reassessment proceedings under Section 147/148, alleging escaped income. The AO made an addition of Rs. 40,00,000/- as unexplained money. The assessee claimed the income arose from the surrender of tenancy rights in FY 2011-12, and a part was used to purchase a new residential unit, claiming exemption under Section 54F.

What were the issues?

Whether the CIT(A) can enhance an assessment by making an addition that was not part of the original assessment order without issuing a proper notice to the assessee, thus violating the principles of natural justice.

Which sections of the Income-tax Act were involved?

Section 144,Section 147,Section 148,Section 250,Section 251,Section 55(2)(a),Section 54F,Section 154,Section 263,Section 251(1)(a),Section 251(2)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “SMC” BENCH, MUMBAI

Before: SMT. BEENA PILLAI

For Appellant: Shri Devendra Jain
For Respondent: Shri Sajit Nair, Sr. D.R
Hearing: 13/02/2025Pronounced: 18/02/2025

Per: Smt. Beena Pillai, J.M.: The Present appeal filed by the assessee arises out of order dated 26/09/2024 passed by NFAC, Delhi for A.Y. 2013-14 on following grounds of appeal :

“Being aggrieved by the order dated 26.09.2024 passed by the Ld. Commissioner of Income Tax (Appeals), Income Tax Department, National Faceless Appeal Centre, Delhi "Ld. CIT(A)" u/s. 250 of the Income-tax Act, 1961 ("Act"), your appellant prefers this appeal, among others, on the following grounds of appeal, each of which is without prejudice to, and independent of, the other:

2 ITA 5810/Mum/2024 A.Y. 2013-14

1.

On the facts and in the circu

The order continues below.

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