VALLABHBHAI DUDABHAI CHHATRALA,SURAT vs. ITO, WARD-3(3) (1), SURAT

ITA 815/SRT/2025Status: DisposedITAT Surat17 February 2026AY 2011-12Bench: DR. B.R.R. KUMAR, VICE-PRESIDENT Ms SUCHITRA KAMBLE (Judicial Member)5 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the Revenue failed to produce any cogent material or evidence to establish that the assessee had made any payment over and above the consideration recorded in the registered sale deed. The Tribunal noted that the assessee had explained the source of their investment and that no evidence of 'on money' payment was brought on record. The Tribunal also noted that Section 56(2)(x)(b) was not applicable for the assessment year in question.

What were the facts?

The assessee filed their return of income for AY 2011-12. Information was received that the assessee purchased an immovable property with a document value of Rs. 1,05,00,000/-, with the assessee having a 15% share. The Assessing Officer (AO) noted a significant difference between the document value and an earlier sale agreement for the same property, suspecting 'on money' payment. The case was reopened under Section 147, and an addition was made under Section 69 for unexplained investment.

What were the issues?

Whether the reopening of assessment under Section 147 was valid and whether the addition made under Section 69 for unexplained investment due to suspected 'on money' payment is justified in the absence of evidence.

Which sections of the Income-tax Act were involved?

Section 147,Section 148,Section 69

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, SURAT BENCH, SURAT

For Appellant: Shri Mehul Shah, AR
For Respondent: Shri Ajay Uke, Sr. DR
Hearing: 22.01.2026Pronounced: 17.02.2026

PER DR. B.R.R. KUMAR, VICE-PRESIDENT:

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This appeal has been filed by the Assessee against the order dated 27.06.2025 passed by the Ld. Commissioner of Income-Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi (“the CIT(A) in short), under Section 250 of the Income-tax Act, 1961 (“the Act”), relating to the Assessment Year 2011-12. 2. The assessee has raised the following grounds of appeal:

1.

On the facts and circumstances of the case as well as law on the subject, the learned CIT(A) has erred in confirming the action of Assessing Officer in re-opening assessment u/s. 147 by issuing notice u/s. 148 of the I.T. Act, 1961. 2. On the facts and cir

The order continues below.

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