ADAM HAJI AMIR HAMZA NADAF,SANGLI vs. ITO WARD-2, SANGLI, SANGLI
IN THE INCOME TAX APPELLATE TRIBUNAL
PUNE BENCHES “SMC”, PUNE
BEFORE DR.MANISH BORAD, ACCOUNTANT MEMBER
आयकर अपील सं. / ITA No.445/PUN/2025
Assessment Year: 2017-18
Adam Haji Amir
Hamza Nadaf,
Shop No.30, STD Booth,
Peth Bhag Bhaji Market,
Ganpati Peth, Miraj,
Sangli - 416416,
Maharashtra
PAN: ANCPN9534H
Vs.
ITO, Ward 2,
Sangli
Appellant
Respondent
आदेश / ORDER
PER DR. MANISH BORAD, ACCOUNTANT MEMBER :
The captioned appeal at the instance of assessee pertaining to A.Y. 2017-18 is directed against the order dated
19.12.2024 of National Faceless Appeal Centre (NFAC) Delhi passed u/s.250 of the Income-tax Act, 1961 (hereinafter also called ‘the Act’) arising out of Assessment Order dated
26.03.2022 passed u/s.147 r.w.s144 of the Act.
Assessee has raised following grounds of appeal :
“1. On the facts in the circumstances of the case and in law the learned Assessing Officer erred in initiating the reassessment proceeding under section 147 of the IT Act, 1961, on the basis of information gathered during the search conducted on 26-05-2017, therefore the action is illegal as the proceedings ought to have been initiated u/s.153C, therefore consequential order passed is bad in law and deserves to be struck down
Appellant by :
Shri Pramod S Shingte
Respondent by :
Shri Sanjay Dhivare
Date of hearing
:
11.08.2025
Date of pronouncement
:
15.09.2025
Adam Haji Amir Hamza Nadaf
On the facts and in the circumstances of the case and in law a learned Assessing Officer erred in making addition of Rs.39,99,535/- as unexplained investments by invoking provisions of section 69 of the IT Act, being cash deposited in Shri Renukamata Multistate Urban Co-operative credit society Ltd., without appreciating the return filed by appellant as well as by dis-regarding appellant's contention. Your appellant prays for deletion of entire addition
Your appellant prays for deletion of entire addition. Your appellant craves for to add, alter amend, modify, delete any or all grounds of appeal before or during the course of hearing in the interest of natural justice.”
1 Assessee has also raised an additional ground which reads as under :
"On the facts and in the circumstances of the case and in law the learned Assessing Officer erred in not issuing notice u/s 143(2) of the Income Tax Act, post filling of income tax return on 17/03/2022, in response to notice u/s. 148, such default is incurable therefore entire proceedings are void-ab-intio and consequential order passed is bad in law."
I will first take up the legal issue challenging the validity of assessment proceedings which has been carried out u/s.147 No.1075/PUN/2024 dated 19.09.2024 submitted that ld. Assessing Officer ought to have initiated the assessment proceedings u/s.153C of the Act and not u/s.147 of the Act and therefore since valid assessment proceedings have not been initiated the same deserves to be quashed.
On the other hand, ld. Departmental Representative supported the order of ld.CIT(A). Adam Haji Amir Hamza Nadaf
3
6. I have heard the rival contentions and perused the material placed before me. The assessee in the instant case is an individual and did not furnished return of income for A.Y.
2017-18. Based on the information about cash deposit by the assessee in Shri Renuka Mata Multistate Urban Coop. State
Credit Society Ltd. (in short ‘RMM’) which was unearthed during the course of search u/s.132 of the Act conducted on 26.05.2017 in the case of RMM, ld. Assessing Officer (AO) initiated the re-assessment proceedings u/s.147 of the Act by issuing notice u/s.148 of the Act.
Before me, ld. Counsel for the assessee submitted that on the basis of very same information in case of another assessee namely Vijaykumar Mangilalji Chordiya (supra) where also information was obtained about cash deposit by this assessee with the account maintained with RMM and re-assessment proceedings u/s.147 were initiated. However, this Tribunal vide order dated 19.09.2024 after considering earlier decision of this Tribunal in the case of ITO Vs. Narendra Sampatlal Bafna in ITA No.688/PUN/2024 order dated 19.08.2024 has held that proper course by the Assessing Officer should have been under the provisions of section 153C of the Act and not under the provisions of section 147 of the Act as the case has been re- opened on the basis of information that emerged at the time of search at the premises of RMM. This Tribunal thus allowed the additional ground raised by the assessee challenging the validity of assessment proceedings and quashed the assessment order u/s.147 r.w.s.143(3) of the Act .
I find that the above decision of this Tribunal is squarely applicable on the facts of the instant case wherein also the proceedings have been carried out on the basis of information Adam Haji Amir Hamza Nadaf
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pertaining to the assessee unearthed during the course of search and therefore respectfully following the above decision in the case of Vijaykumar Mangilalji Chordiya (supra) I hold that the assessment proceedings in question deserves to be quashed as they have not been carried out u/s.153C of the Act. Ground
No.1 raised by the assessee is allowed.
Dealing with remaining grounds raised by the assessee on merit would become academic
In the result, appeal of the assessee is allowed
Order pronounced on this 15th day of September, 2025. (MANISH BORAD)
ACCOUNTANT MEMBER
पुणे / Pune; दनांक / Dated : 15th September, 2025. Satish
आदेश क ितिलिप अ ेिषत / Copy of the Order forwarded to :
अपीलाथ / The Appellant. 2. यथ / The Respondent. 3. The Pr. CIT concerned. 4. िवभागीय ितिनिध, आयकर अपीलीय अिधकरण, “SMC” बच, पुणे / DR, ITAT, “SMC” Bench, Pune.
गाड फ़ाइल / Guard File. आदेशानुसार / BY ORDER,
//// Senior Private Secretary
आयकर अपीलीय अिधकरण, पुणे / ITAT, Pune.