PREM SINGH SALUJA,RAIPUR vs. INCOME TAX OFFICER WARD-2, RAIGARH

ITA 428/RPR/2024Status: DisposedITAT Raipur29 January 2025AY 2011-12Bench: SHRI RAVISH SOOD (Judicial Member), SHRI ARUN KHODPIA (Accountant Member)22 pages
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What did the Tribunal hold?

The Tribunal observed that the benami transaction issue, forming the basis of the reassessment, was under adjudication before the Appellate Tribunal for Prevention of Money Laundering (ATPML), New Delhi, and the Adjudicating Authority had identified joint beneficial owners. Thus, the entire addition for unexplained investment could not be solely sustained in the assessee's hands. The case was remanded to the Assessing Officer for fresh adjudication, to consider the PBPT Authorities' orders and allocate the addition among the respective beneficial owners.

What were the facts?

The assessee, Prem Singh Saluja, was alleged to have purchased immovable property worth Rs. 51,53,100/- in FY 2010-11 in the name of a benamidar, with payments made in cash. As the assessee had not filed his Income Tax Return for the relevant year, the Assessing Officer initiated reassessment proceedings under Section 148, treating the investment as unexplained under Section 69. The Adjudicating Authority under the PBPT Act, 1988, subsequently held the property to be benami, identifying the assessee and M/s Bhatia Energy and Minerals Pvt. Ltd. as joint beneficial owners.

What were the issues?

1. Whether the reassessment proceedings initiated under Section 147/148 with approval under Section 151 were valid. 2. Whether the addition for unexplained investment under Section 69 could be solely sustained in the assessee's hands given ongoing benami proceedings identifying joint beneficial owners.

Which sections of the Income-tax Act were involved?

Section 250,Section 143(3),Section 147,Section 148,Section 151,Section 69,Section 271(1)(c),Section 271F

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, RAIPUR BENCH, RAIPUR

Before: SHRI RAVISH SOOD, JM & SHRI ARUN KHODPIA, AM

Hearing: 08.01.2025Pronounced: 29.01.2025

Per Arun Khodpia, AM:

The aforesaid appeal is filed by the assessee against the order of Commissioner of Income Tax (Appeals), NFAC, Delhi, [in short “Ld. CIT(A)”], u/s 250 of the Income Tax Act, 1961 (in short “The Act”), for the Assessment Year 2011-12 dated 30.07.2024, which in turn arises from the order of Income Tax Officer, Ward-2, Raigarh, (Assessing Officer, in short “Ld. AO”), u/s 143(3) r.w.s. 1

The order continues below.

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