INCOME TAX OFFICER-2(1), INDORE, AAYAKAR BHAWAN INDORE vs. GURDEEP SINGH CHHABRA, INDORE

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आयकरअपीलीयअिधकरण, इंदौरɊायपीठ, इंदौर
IN THE INCOME TAX APPELLATE TRIBUNAL
INDORE BENCH, INDORE
BEFORE SHRI B.M. BIYANI, ACCOUNTANT MEMBER
AND SHRI PARESH M. JOSHI, JUDICIAL MEMBER
ITO-2(1)
Indore
बनाम/
Vs.
Gurdeep Singh Chhabra,
10, Adarsh Nagar,
Indore
(Revenue/Appellant)
(Assessee/Respondent)
Cross-Objection No. 14/Ind/2025 (AY: 2014-15)
Gurdeep Singh Chhabra,
10, Adarsh Nagar,
Indore
बनाम/
Vs.
ITO-2(1)
Indore
(Assessee/Cross-Objector)
(Revenue/Respondent)
PAN: ABKPC5598A
Assessee by Shri S.S. Sheetal & Prabhpreet Sheetal, ARs
Revenue by Shri Ashish Porwal, Sr. DR
Date of Hearing
01.10.2025
Date of Pronouncement
16.10.2025
आदेश/ O R D E R
Per B.M. Biyani, A.M.:
Feeling aggrieved by order of first appeal dated 08.08.2024 passed by Commissioner of Income-tax (Appeal)-NFAC, Delhi [“CIT(A)”] which in turn arises out of assessment-order dated 30.05.2023 passed by Assessment
Unit of Income-tax Department [“AO”] u/s 147 r.w.s. 144B of the Income-tax
Act, 1961 [“the Act”] for assessment-year [“AY”] 2014-15, the revenue has filed captioned appeal and the assessee has filed captioned cross-objection.

Gurdeep Singh Chhabra
ITA No.726/Ind/2024 & CO No.14/Ind/2025 - A.Y.2014-15
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2. The background facts leading to these matters as culled out from orders of lower-authorities and as explained by Ld. AR for assessee during hearing, are as under:
(i)
The assessee-individual filed his return of AY 2014-15 on 29.03.2016
declaring a total income of Rs. 4,31,880/- which was assessed.
Subsequently, the AO received an information that the assessee, jointly with Shri Ranveer Singh Chhabra (brother of assessee), sold an immovable property for Rs.
2,25,00,000/-
(valued by Stamps
Authority at Rs. 4,15,20,000/-). Based on this information, the AO framed a belief that the transaction done by assessee had escaped assessment. Accordingly, the AO issued notice dated 22.04.2021 (after expiry of 6 years from end of relevant AY 2014-15) u/s 148 to re-open assessee’s case of AY 2014-15 under erstwhile provision of section 147, relying upon the relaxations under the Taxation and Other Laws
(Relaxation and Amendment of Certain Provisions) Act, 2020 [“TOLA”]
read with Notification No. 38/2021 dated 27.04.2021 extending time- limit upto 30.06.2021 for issuance of notice u/s 148. In response to this notice, the assessee filed return on 02.09.2021. At the same time, the assessee also filed objection against the action taken u/s 147 after expiry of 6 years’ period and further claiming that the new scheme of section 147 had already come in statute w.e.f. 01.04.2021, therefore the notice is illegal. Identical objection also came up before Hon’ble
Supreme Court in the matters of other assessees and the Hon’ble

Gurdeep Singh Chhabra
ITA No.726/Ind/2024 & CO No.14/Ind/2025 - A.Y.2014-15
138 taxmann.com 64 (SC), order dated 04.05.2022 giving certain directions. The AO dropped proceedings taking into account the submission of assessee in the light of decision of Hon’ble Supreme
Court.
(ii)
However, the AO re-initiated proceeding under the new scheme of section 147. For this purpose, the AO firstly issued a preliminary show-cause notice dated 21.05.2022 u/s 148A(b) inviting assessee’s explanation as to why notice u/s 148 should not be issued? The notice issued by AO is scanned and re-produced below:

Gurdeep Singh Chhabra
ITA No.726/Ind/2024 & CO No.14/Ind/2025 - A.Y.2014-15
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Gurdeep Singh Chhabra
ITA No.726/Ind/2024 & CO No.14/Ind/2025 - A.Y.2014-15
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In response to above notice, the assessee filed reply dated 04.06.2022
[Page 74 of Paper-Book] claiming that the transaction of sale took place on 26.03.2013
and the sale-deed was also executed on 26.03.2013, falling within previous year 2012-13 relevant to AY 2013-
14 but the registered sale-deed was released by office of sub-