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Facts
The appeal was filed by the assessee against the order of the NFAC, Delhi, which arose from an assessment order passed under Section 147 of the Income Tax Act. The solitary issue was the addition made by the Assessing Officer for unexplained investment in a flat. The assessee claimed the investment was from a loan and sale proceeds of agricultural land.
Held
The Tribunal noted that the assessee did not file written submissions on legal issues, leading to the dismissal of grounds 2, 3, and 5. For grounds raised on merits (1 and 4), the Tribunal restored the issues to the Assessing Officer for de novo adjudication after providing the assessee with a reasonable opportunity to be heard and to present evidence.
Key Issues
Whether the CIT(A) erred in confirming the addition of Rs.21,12,421/- made by the Assessing Officer for unexplained investment in a flat, and if the assessee provided sufficient evidence for the source of funds.
Sections Cited
250, 147, 144, 144B, 69A, 69, 144
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, PUNE BENCHES “SMC”, PUNE
Before: DR.MANISH BORAD & SHRI S.S.VISWANETHRA RAVI
आदेश / ORDER
PER DR. MANISH BORAD, ACCOUNTANT MEMBER :
The captioned appeal at the instance of assessee pertaining the assessment year 2018-19 is directed against the order dated 12.07.2024 framed by National Faceless Appeal Centre, Delhi passed u/s.250 of the Income Tax Act, 1961 ( in short ‘the Act’) which inturn is arising out of the Assessment order dated 11.03.2023 passed u/s.147 r.w.s.144 r.w.s.144B of the Act.
When the case was called for, none appeared on behalf of the assessee despite due service of notice of hearing. However, assessee has filed a letter dated 12.03.2025 requesting to decide the appeal on the basis of written submissions. We therefore proceed to adjudicate the appeal with the able assistance from the Departmental Representative and available record.
The solitary issue for our consideration is that whether the ld.CIT(A) erred in confirming the addition of Rs.21,12,421/- made by the Assessing Officer u/s.69A of the Act on account of unexplained investment in flat.
Ld. Departmental Representative supported the orders of the lower authorities.
We have heard the ld. Departmental Representative and perused the record placed before us. The assessee has raised six grounds of appeal wherein Ground Nos. 1 and 4 are raised on merits of the case and Ground Nos. 2, 3 and 5 have been raised on legal issues. However, in absence of written submissions by the assessee on legal issues, Ground Nos. 2, 3 and 5 are dismissed.
In so far as Ground Nos. 1 and 4 raised by the assessee on merits of the case, we notice that the addition has been made by the Assessing Officer for unexplained investment u/s.69 of the Act for purchase of flat at Rs.21,12,421/-. Before AO, assessee could not plead by filing the necessary submissions resulting into best judgment assessment u/s.144 of the Act. Even before ld.CIT(A) except filing of appeal, assessee could not file any evidence in support of his case. Before us, assessee has stated that source of investment in the flat at Rs.21,12,421/- is mainly from two sources; (i) firstly from the loan received from India Shelter Finance Corporation Ltd. at Rs.13,29,421/-and (ii) sale proceeds of Rs.7,85,000/- received from sale of ancestral agricultural land in the rural area. Relevant evidence has been filed in the paper book furnished on 18.02.2025 running into 145 pages. Considering the written submissions of the assessee and the documents filed in the paper book, we deem it proper to restore the issues raised on merits to the file of ld. Jurisdictional Assessing Officer for denovo adjudication which should be carried out after providing reasonable opportunity of being heard to the assessee and also to consider the evidences explaining the source of alleged investment and then decide in accordance with law. Assessee is directed to remain vigilant and not to take unnecessary adjournment unless otherwise required, failing which, the ld.JAO is free to proceed as per the law. Assessee is further directed to provide proper email id and phone number to the department for receiving notices of hearing through ITBA portal. Grounds of appeal No.1 and 4 raised by the assessee are allowed for statistical purposes.
In the result, the appeal of the assessee is partly allowed for statistical purposes.
Order pronounced on this 21st day of March, 2025.