ITA 925/Bang/2026

Parties Involved

Facts Summary

The assessee, Makaba Kariyappa Venkatesh, filed an appeal against the order passed by the National Faceless Appeal Centre for the assessment year 2020-21. The assessee had received ₹4,044,500 in his bank account, earned interest of ₹109,479, purchased immovable property for ₹73,50,000, and made time deposits of ₹22,00,000. The assessment was reopened as the assessee was a non-filer. The assessee filed a return declaring total income of ₹109,479. The Assessing Officer accepted the assessee's explanation for all other transactions except for the unsecured loans of ₹19,10,000 from two persons. The assessee explained that the loans were obtained for house construction and medical treatment. The Assessing Officer questioned the genuineness of the loans and made an addition of ₹19,10,000 under section 68 of the Income Tax Act. The assessee appealed to the CIT(A), who confirmed the addition. The assessee then appealed to the ITAT.…

Legal Issues

• 1. Whether the order passed under section 250 of the Income-Tax Act, 1961, is opposed to law, weight of evidence, natural justice, probabilities, facts and circumstances of the case.
• 2. Whether the Assessing Officer erred in issuing notice under Section 148 of the Act without furnishing a copy of the mandatory approval obtained under section 151 of the Act.
• 3. Whether the Assessing Authorities have complied with the mandatory procedures laid down under section 151A of the Act.
• 4. Whether the CIT(A) provided a proper opportunity of hearing by serving the notice to the Appellant through postal mode.
• 5. Whether the Assessing Officer erred by treating the loan amount received into the bank account as unexplained money under section 68 of the Act.

Judgment Outcome

Decided in favour of Assessee.

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