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Facts
The assessee filed a return for A.Y. 2017-18. The AO received information regarding the assessee's investment in property and 'on-money' payment of Rs. 58 lakhs, believing income had escaped assessment. After non-compliance with notices under sections 148 and 142(1), the AO invoked section 144, adding Rs. 58,00,000/- under section 69. The CIT(A) sustained the validity of reassessment proceedings and the addition, dismissing the assessee's appeal.
Held
The Tribunal found that the CIT(A) sustained the reassessment and addition without providing proper opportunity or considering the assessee's evidence. Therefore, applying principles of natural justice, the Tribunal restored the disputed issues back to the CIT(A) for fresh adjudication on merits, directing adequate opportunity of hearing for the assessee.
Key Issues
The validity of reassessment proceedings under sections 147/148 and the sustainability of the addition under section 69, along with the denial of proper opportunity to the assessee by the CIT(A).
Sections Cited
143(3), 147, 250, 69, 148, 142(1), 144
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, PANAJI BENCH
Before: SHRI PAVAN KUMAR GADALE & SHRI G D PADMAHSHALI
Assessee by None Revenue by Shri.Ish Gupta. Sr.DR सुनवाई की तारीख/Date of Hearing 25.08.2025 घोषणा की तारीख/Date of Pronouncement 26.08.2025 ORDER
PER PAVAN KUMAR GADALE, JM:
The appeal is filed by the assesse against the order of the NFAC Delhi/CIT (A) passed u/sec 143(3) r.w.s147 and u/sec 250 of the Act. The assessee has raised the grounds of appeal
challenging the order of the CIT(A) on validity of re assessment proceedings under section 147 of the Act and sustaining the addition u/sec 69 of the Act made by the Assessing Officer.
2. The brief facts of the case are that, the assesse has filed the return of income for A.Y.2017-18 on 25.07.2017 2025. Ramappa Lachappa Sidapur. disclosing a total income of Rs.7,91,080/-. The assessing officer (A.O) has received the information that the assessee has made the investment in the property and certain payments made over and above the sale consideration to builder and there was search and survey operations at builder premises. The assessing officer has reason to believe that the income has escaped the assessment and issued notice u/sec148 of the Act and there was no compliance. Whereas the A.O find that the assesse has paid on money on purchase of immovable property in cash to the extent of Rs.58 lakhs and the notice u/sec142(1) of the Act was issued to furnish the details and sources of cash payments and also show cause notice was issued but there was no compliance. Since, no explanations/details were filed, the AO considering the information available on record has invoked the provisions of Sec.144 of the Act and made addition of Rs.58,00,000/- u/sec69 of the Act and assessed the total income of Rs.65,91,100/- and passed the order u/sec 144 r.w.s147 of the Act dated 19.03.2022.
Aggrieved by the order, the assessee has filed an appeal before the CIT(A), whereas the CIT(A) has considered the grounds of appeal, statement of facts, submissions of the assessee and findings of the AO but has sustained the validity of issue of notice u/sec148 of the Act and addition u/sec69 of the A.O and dismissed the assessee
4. At the time of hearing, none appeared on behalf of the assesse and the Ld.DR supported the order of the CIT(A).
We heard the Ld.DR submissions and perused the material on record. The sole crux of the disputed issue in the grounds of appeal of the assessee that that the CIT(A) has erred in sustaining the validity of initiation of reassessment proceedings u/sec147 of the Act and sustaining the addition u/sec69 of the Act without providing proper opportunity and overlooking the facts and material evidences. The assesse has filed all the details before the lower authorities and the CIT(A) has not considered the documents and information supporting the claim of the assesse. Prima-facie, the CIT(A) has dealt on the findings of the AO and has not considered the submissions/evidences of the assesse filed in the proceedings and has not allowed the grounds of appeal. Therefore, we considering the overall facts, circumstances and principles of natural justice shall provide with one more opportunity of hearing and accordingly restore the disputed issue to the file of the CIT(A) for afresh adjudication on merits and the CIT(A) shall provide adequate opportunity of being heard to the assessee and 2025. Ramappa Lachappa Sidapur. the assessee should also cooperate in submitting the information for early disposal of the appeal and the grounds of appeal
of the assessee are allowed for statistical purpose.
6. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open court on 26.08.2025.