Paresh Devabhai Panchal vs The ITO, Ward-2(1)(2), Ahmedabad

Parties Involved

Facts Summary

The assessee filed the return of income on 15-10-2019 admitting total income of Rs. 4,51,640/-. The case was selected for reassessment proceedings u/s. 147 of the Act based on credible information flagged on insight portal emanating from search and seizure action on 28-01-2020 in a builder case. As assessee jointly bought a property from the said builder, his 50% share of alleged on money consideration i.e. Rs. 1,66,666/- was added to the total income u/s. 69 to be taxed as per provisions of section 115BBE of the Act. On appeal, the CIT(A) dismissed the assessee’ case holding that irrefutable facts established unexplained on money investment. Thus, he confirmed the addition made by A.O. On further appeal, the assessee questioned reopening of assessment as well as AO’s addition on the ground that assessment was made merely on presumptions.…

Legal Issues

• 1. Reopening of assessment by issuance of notice u/s. 148 and 148A(b) of the Act
• 2. Addition made by AO on the ground that assessment was made merely on presumptions

Judgment Outcome

Decided in favour of Assessee.

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