Praveen Khurana vs. ACIT, Circle 46 (1)

Parties Involved

Facts Summary

The assessee, Praveen Khurana, filed his return of income for the Assessment Year 1998–99 on 31.03.1998, declaring a Gross Total Income of Rs.22,06,990/- and a total tax liability of Rs.6,37,070. The Income Tax Department initiated reassessment proceedings by issuing a notice under Section 148 of the Income-tax Act, 1961 dated 11.01.2001. The assessee complied with all notices issued during the reassessment proceedings and furnished the requisite explanations along with supporting documents. Upon completion of the reassessment proceedings, the Assessing Officer passed an assessment order under Sections 143(3) read with 147 of the Act for the Assessment Year 1998–99, making six additions aggregating to Rs.14,89,612/- to the returned income of the assessee. The assessee preferred an appeal before the ld. CIT (A) challenging the additions made by the Assessing Officer. The ld. CIT (A) passed the impugned appellate order on 27.03.2026, sustaining Addition Nos. 1, 2, and 6. The assessee filed an appeal before the Income Tax Appellate Tribunal.…

Legal Issues

• 1. Whether the notice issued under Section 148 of the Income-tax Act, 1961 was issued without proper recording and furnishing of reasons, thereby failing to satisfy the mandatory conditions precedent for assumption of jurisdiction under Section 147.
• 2. Whether the assessee was given a proper opportunity to be heard or rebuttal was afforded to the appellant.
• 3. Whether the disallowance of long-term capital loss amounting to Rs.5,45,105/- was arbitrary, unjustified, and contrary to law.
• 4. Whether the disallowance of short-term capital loss amounting to Rs.5,20,825/- was arbitrary, unjustified, and contrary to law.
• 5. Whether the disallowance of travelling expenses incurred for travel to the USA amounting to Rs.1,50,000/- was arbitrary, unjustified, and contrary to law.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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