BRIJWASI REAL ESTATE,MATHURA vs. INCOME TAX OFFICER 1(3)(1), MATHURA

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ITA 74/AGR/2024Status: DisposedITAT Agra22 April 2025AY 2011-12Bench: HON’BLE SHRI SATBEER SINGH GODARA, JM AND HON’BLE SHRI MANOJ KUMAR AGGARWAL (Accountant Member)3 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal found that the deletion of the addition by the CIT(A) contained a typographical error, mentioning Rs. 269.10 Lacs instead of Rs. 296.10 Lacs. The Tribunal corrected this error and directed the AO to delete the entire addition of Rs. 296.10 Lacs.

What were the facts?

The assessee's case was reopened based on information that income had escaped assessment due to investment in immoveable properties. The Assessing Officer (AO) made an addition of Rs. 296.10 Lacs on account of unsecured loans, stating the assessee could not prove their nature and source.

What were the issues?

Whether the addition made by the AO on account of unsecured loans was justified. Whether the CIT(A) correctly deleted the addition, despite a typographical error in the amount.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 147,Section 148,Section 68

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “DB” BENCH, AGRA

Before: HON’BLE SHRI SATBEER SINGH GODARA, JM & HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM

Pronounced: 22.04.2025

(िनधा�रणवष� / Assessment Year: 2011-12) M/s Brijwasi Real Estate Income-tax Officer, बनाम/ 40/2-A, Sarswati Bhawan, Ward 1(3)(1), Mathura. Vs. Prayag Ghat, Mathura (UP). �थायीलेखासं./जीआइआरसं./PAN/GIR No. AAKFB6619C (अपीलाथ�/Appellant) : (� थ� / Respondent) अपीलाथ�कीओरसे/ Appellant by : Sh. M.M. Agarwal, CA – Ld. AR � थ�कीओरसे/Respondent by : Sh. Shailender Shrivastava – Ld. Sr. DR सुनवाईकीतारीख/Date of Hearing : 18-02-2025 घोषणाकीतारीख /Date of Pronouncement : 22.04.2025 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeal by assessee for Assessment Year (AY) 2011-12 arises out of an order of learned Commissioner of Income Tax (Appeals), NFAC, Delhi [CIT(A)] dated 24-01-2024 in the matter of an assessment framed by Ld. Assessing Officer [AO] u/s. 143(3) r.w.s. 147 of the Act on 30-12-2018. Having heard rival submissions and upon perusal of case records, our adjudication would be as under.

2.

From the case records, it emerges that the case of the assessee was reopened by issue of notice u/s 148 on 31-03-2018 pursuant to receipt of certain information from investigation wing. It was alleged that income of Rs.544.47 Lacs escaped assessment. The same represent investment in two immoveable properties by the firm. The assessee stated that the properties were purchased out of partners’ capital. The Ld. AO noted that as on 31-03-2011, the partners’ capital was Rs.421.15 Lacs and unsecured loans were Rs.296.10 Lacs. The closing stock was shown for Rs.568.39 Lacs. The Ld. AO finally made addition u/s 68 for Rs.296.10 Lacs with respect to unsecured loans on the allegation that the nature and source thereof could not be proved by the assessee.

3.

During first appeal, the assessee stated that original return of income was filed furnishing full financial statements and the same was proceeded u/s 143(1). During assessment proceedings, the assessee furnished documents with regards to contributions received from the partners in order to explain the sources of funds which were used for making investment in lands. The assessee also questioned the jurisdiction of Ld. AO by citing various judicial pronouncements.

4.

The Ld. CIT(A), in para 7.3, rejected legal ground by observing that information was received from investigation wing that the assessee had purchased immoveable properties and the source of purchases required investigation. The same was sufficient enough to form belief of escapement of income. However, on merits, Ld. CIT(A) concurred that no independent enquiries were conducted by Ld. AO and the assessee was not asked to submit any details with regard to unsecured loans. Accordingly, the impugned addition was deleted. However, the Ld. CIT(A) made a typographical error and deleted the addition of Rs.269.10 Lacs as against addition of Rs.296.10 Lacs as made by Ld. AO. The same is the very grievance of the assessee. The Ld. AR has stated that the assessee preferred rectification application which is pending since a long time and hence, this appeal.

5.

Considering the facts of the case, it is quite clear that there is mere typographical error in the impugned order. The Ld. AO had made addition of unsecured loans for Rs.296.10 Lacs. The same had inadvertently been mentioned as Rs.269.10 Lacs in the impugned order. Therefore, we correct the same and direct Ld. AO to delete the entire impugned adition of Rs.296.10 Lacs.

6.

The appeal stand allowed. Order pronounced u/r 34(4) of Income Tax (Appellate Tribunal) Rules, 1963.

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