Ajit Madhukar Valsangkar vs. ACIT

Parties Involved

Facts Summary

The appellant, Ajit Madhukar Valsangkar, filed an income tax return for the assessment year 2016-17 declaring a total income of Rs.14,05,420/-. During a search and seizure action conducted in the case of M/s. Dhammanagi Group, certain incriminating material relating to the appellant was found and seized. It was found that the appellant had sold a property for a total consideration of Rs.77.00 crores, with his share being Rs.12,03,125/-. Since the appellant had not disclosed the capital gains arising from the sale of the property, a notice under section 153C was issued to him on 21.09.2021. The appellant did not respond to the notice, leading to a best judgment assessment under section 153C r.w.s.144 of the Act by the Assessing Officer. The appellant appealed against this assessment to the Commissioner of Income Tax (Appeals), who confirmed the action of the Assessing Officer. The appellant then filed an appeal before the Income Tax Appellate Tribunal.…

Legal Issues

• 1. Whether the assessment order passed under section 153C r.w.s.144 of the Act was valid?
• 2. Whether the time given to the appellant to comply with the notice under section 142(1) was reasonable?

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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