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Facts
The assessee appealed against the CIT(A)-NFAC's order for AY 2012-13, which upheld an addition of Rs. 37.50 lakhs as unexplained cash credit. The Assessing Officer had initiated reassessment proceedings under sections 148/147, identifying this amount as an advance received by the assessee for the sale of a plot, evidenced by a dated agreement.
Held
The Tribunal observed that since the Assessing Officer himself identified the source of the cash credit as an advance for a plot sale, which was the basis for reopening the assessment, treating it as unexplained would contradict the very reasons for reassessment. Consequently, the Tribunal directed the deletion of the addition of Rs. 37.50 lakhs.
Key Issues
Whether an amount identified by the Assessing Officer during reassessment proceedings as an advance for sale of property, supported by a sale agreement, can simultaneously be treated as an unexplained cash credit.
Sections Cited
Section 143(3), Section 147, Section 148, Income-tax Act, 1961
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI (SMC
Date of hearing 23.12.2024 Date of pronouncement 23.12.2024 ORDER This assessee’s appeal for assessment year 2012-13, arises against the Commissioner of Income Tax (Appeals)-National Faceless Appeal Centre [in short, the “CIT(A)-NFAC”],Delhi’s DIN and order no. ITBA/NFAC/S/250/2023-24/1059339362(1) dated 03.01.2024 involving proceedings under section 143(3) r.w.s. 147 of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’).
Heard both the parties at length. Case file perused.
Coming to the assessee’s sole substantive grievance challenging the correctness of both the learned lower authorities’ action treating an amount of Rs.37.50 lakhs as unexplained, it