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Facts
The assessee company engaged in shipping and cargo services filed its return of income, which was initially accepted under section 143(3). Subsequently, following survey operations and a search in a related party's case, the Assessing Officer reopened the assessment under section 147, making an addition of Rs. 51,19,000/- under section 69A for unexplained cash receipts. The CIT(A) upheld the validity of reassessment proceedings and the addition made under section 69A.
Held
The Tribunal held that the notice for reassessment proceedings was issued within the validity period. However, it found that the CIT(A) had not adequately considered the assessee's submissions and evidence regarding the cash transactions. Therefore, the Tribunal decided to give the assessee one more opportunity to substantiate its case.
Key Issues
Validity of reassessment proceedings under section 147 and the applicability of additions under section 69A for unexplained money, considering the assessee's evidence.
Sections Cited
147, 148, 143(3), 69A
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Income Tax Appellate Tribunal, PANAJI BENCH PANAJI
Before: SHRI PAVAN KUMAR GADALE & SHRI G D PADMAHSHALI
सुनवाई की तारीख/Date of Hearing 11.02.2026 घोषणा की तारीख/Date of Pronouncement 17.03.2026 ORDER
PER PAVAN KUMAR GADALE, JM:
The appeal is filed by the assesse against the order of theADDL/JCIT(A)-6 Kolkata passed u/sec 143(3)r.w.s147 and U/sec 250 of the Act. The assessee has raised the grounds of appeal challenging the order of the CIT(A) sustaining (i) validity of reassement proceedings u/sec147 of the Act and(ii)sustaining the addition u/sec69A of the Act made by the Assessing Officer.
The brief facts of the case are that, the assessee company is engaged in the business of Barge Transportation charges, traders in Iron ore including export and cargo handling services from infrastructure facility developed under the Boot. The assessee has filed the return of income for A.Y.2007-08 on 31.10 .2007 disclosing a total income of Rs.80,21,230/-. Subsequently the case was selected for scrutiny and the assessment was completed under section 143(3) of the Act on 29.12.2009 accepting the returned income. There was survey operations u/sec133A of the Act on 22.09.2011 and as a result of survey the case was reopened u/sec147 of the Act and assessment was completed u/se 143(3)r.w.s147 of the Act on 28.03.2013 with the assessed income of Rs.1,16,96,177/-. Further the case was reopened u/sec147 of the Act and notice u/sec148 of the Act was issued on 28.03.2014. In compliance the assessee has filed a letter to treat the return filed earlier on 26.07.2012.Subsequently notice u/sec 143(2) and u/sec 142(1) of the Act are issued. In compliance, the Ld.AR of the assessee appeared and filed the submissions and clarifications.
Whereas the Assessing Officer( A.O) find that because of search u/sec132 of the Act in the case of Mr.Rashid Khan partner of M/s Trimurti exports , an evidence related to cash transactions of assessee and the partnership firm M/s Trimurti exports was seized. The A.O has considered the cash adjustment transactions and find that cash Shree Mallikarjun shipping Pvt Limited. receipt aggregating to Rs.51,19,000/- made in the F.Y.2006-07 was not accounted in the books of account and assessee was served with notice to explain the same. Since there was no compliance by the assessee, the A.O invoked the provisions of section69A of the Act and made addition of unexplained money of Rs.51,19,000/- and finally assessed the total income of Rs.1,68,15,177/- and passed the order u/sec 143(3) r.w.s147 of the Act dated 30.03.2015.
Aggrieved by the order, the assessee has filed an appeal before the CIT(A), whereas the CIT(A) has considered the grounds of appeal, submissions of the assessee and findings of the A.O but has sustained the validity of reassessment proceedings u/sec147 of the Act and addition of unexplained money u/sec69A of the Act and the CIT(A)has granted relief in other grounds of appeal and partly allowed the assessee appeal. Aggrieved by the order of the CIT(A), the assessee has filed an appeal with the Hon’ble Tribunal.
5. At the time of hearing, the Ld.AR submitted that the CIT(A) has erred in confirming validity of reassement proceedings and addition of unexplained money u/sec69A of the Act made by the Assessing officer overlooking the information of the proceedings. The Ld.AR mentioned that there is no justification to reopen the case by issue of notice u/sec148 of the Act after expiry of 4 years period from the end of the assessment year and also Shree Mallikarjun shipping Pvt Limited. the CIT(A) has not dealt on the submissions and details filed in the appellate proceedings to substantiate that the assessee has accounted all transactions in their books of accounts and the provisions of section 69A of the Act are not applicable. The Ld.AR supported the submissions with the factual paper book and prayed for allowing the appeal. Per Contra, the Ld.DR submiited that the notice u/sec148 of the Act was issued within the validity period and the assessee has not filed the requisite details of cash transactions and the Ld.DR supported the order of the CIT(A).
We heard the rival submissions and perused the material on record. The crux of the disputed issues in the grounds of appeal of the assessee that that the CIT(A) has erred in sustaining the validity of initiation of reassessment proceedings u/sec147 of the Act and sustaining the addition u/sec69A of the Act without providing proper opportunity and overlooking the facts and material evidences. The assesse has filed all the details before the lower authorities and the CIT(A) has not considered the documents and information supporting the claim of the assesse. On the first disputed issue of validity of reassessment proceedings u/sec147 of the Act, the Ld.AR contentions are that notice was issued after expiry of 4 years, we find that the assessment was completed under section 143(3) of the Act on 29.12.2009 accepting the returned income and due to survey Shree Mallikarjun shipping Pvt Limited. operations u/sec133A of the Act on 22.09.2011,the case was reopened u/sec147 of the Act and assessment was completed u/se 143(3)r.w.s147 of the Act on 28.03.2013 with the assessed income of Rs.1,16,96,177/-.And again the case was reopened u/sec147 of the Act and notice u/sec148 of the Act was issued on 28.03.2014.We find that notice was issued within 6 years after the end of relevant asstyearA.Y.2007-08, and the CIT(A) has considered the facts and provisions of section147 of the Act and upheld the validity of reassement and accordingly, we do not find infirmity in the order of the CIT(A) on this disputed of validity of issue of notice u/sec148 of the Act and uphold the same and dismiss this ground of appeal
of the assessee. .On the second disputed issue, the Ld.AR highlighted that the cash transactions are duly recorded in the books of accounts and the assesee has a good case on merits. Prima-facie, the CIT(A) has dealt on the findings of the AO and has not considered the submissions/evidences of the assesse filed in the proceedings and has not allowed the grounds of appeal. Therefore, considering the facts, submissions and principles of natural justice, shall provide with one more opportunity of hearing to the assessee to substantiate the case with evidences and information. Accordingly, we set aside the order of the CIT(A) on this issue and remit the disputed issue to the file of the CIT(A) to adjudicate afresh and the assesse should be provided adequate opportunity of hearing and shall cooperate in submitting the Shree Mallikarjun shipping Pvt Limited. information for early disposal of the appeal. And the grounds of appeal of the assessee on this disputed issue are allowed for statistical purposes.
7. In the result, the appeal filed by the assessee is partly allowed for statistical purposes. Order pronounced in the open court on 17.03.2026.