SH. NASRUDDIN,KOTA vs. ITO, WARD-2(1), KOTA, KOTA

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ITA 716/JPR/2025Status: DisposedITAT Jaipur29 September 2025AY 2016-17Bench: SHRIGAGAN GOYAL (Accountant Member), SHRI NARINDER KUMAR (Judicial Member)12 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that since the incriminating material was recovered during a search on a third-party group and not directly from the assessee, the appropriate provision for re-opening the assessment was Section 153C, not Section 148. It noted the department's failure to provide copies of the incriminating material to the assessee. Relying on a High Court decision, the Tribunal concluded that the reopening under Section 148 was invalid in this scenario and set aside the CIT(A)'s order.

What were the facts?

The assessee challenged an addition of Rs. 6,81,750/- for unexplained investment, which arose from an assessment reopened under Section 148 of the Income Tax Act. The reopening was based on incriminating material seized during a search operation on a third-party, Shubham Group, where the assessee had purchased a property. The assessee contended that the assessment should have been conducted under Section 153C, as the material was from a third-party search, and that the incriminating documents were not provided to him.

What were the issues?

The primary legal issue was the validity of reopening assessment under Section 148 of the Income Tax Act when incriminating material was seized during a search on a third party, and whether Section 153C was the appropriate provision for such proceedings, especially when incriminating material was not provided to the assessee.

Which sections of the Income-tax Act were involved?

Section 147,Section 148,Section 148A(b),Section 148A(d),Section 149,Section 149(1)(a),Section 149(1)(b),Section 153A,Section 153C,Section 153D

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, JAIPUR BENCHES,”SMC-Bench” JAIPUR

Before: SHRIGAGAN GOYAL, AM& SHRI NARINDER KUMAR, JM

Hearing: 25/09/2025

*As a result, this appeal is allowed and the impugned order passed by learned CIT(A) dismissing the appeal of the assessee is hereby set aside

File be consigned to the record room after the needful is done by the office.

Order pronounced in the open court on 29/09/2025.

¼xxu xks;y½ ¼ujsUnzdqekj½ (GAGAN GOYAL) (NARINDER KUMAR) ys[kk lnL; @Accountant Member U;kf;dlnL;@Judicial Member Tk;iqj@Jaipur fnukad@Dated:-/09/2025 *Santosh आदेश की प्रतिलिपिअग्रेf’ात@ब्वचल वf जीम वतकमत वितूंतकमक जवरू The Appellant- Sh. Nasruddin, Kota. 1. izR;FkhZ@ The Respondent- ITO, Ward-2(1), Kota. 2. 3. vk;djvk;qDr@ Theld CIT 4. विभागीय प्रतिनिधि] आयकरअपीलीय अधिकरण] जयपुर@क्त्ए प्ज्Aज्ए Jंपचनत xkMZQkbZy@ Guard File 5. vkns'kkuqlkj@ By order,

सहायकपंजीकार@Aेेजज. त्महपेजतंत

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