Question 1

What are the key legal issues in Sh. Sunil Kumar Nagar vs. Income Tax Officer, Ward 2(4), Faridabad?

Accepted Answer

1. Whether the Assessing Officer had jurisdiction to reopen the assessment under section 147 of the Act? 2. Whether the addition made by the Assessing Officer is sustainable?

Question 2

What are the facts of Sh. Sunil Kumar Nagar vs. Income Tax Officer, Ward 2(4), Faridabad?

Accepted Answer

The assessee filed his return of income on 31.03.2014 declaring income of Rs.6,42,380/-. The case was selected for scrutiny after recording reasons and after getting necessary approval under section 151 (2) of the Income-tax Act, 1961. Notice u/s 148 of the Act was issued on 28.03.2017. The Assessing Officer observed that the assessee has paid Rs.3,50,000/- through cheque and balance amount of Rs.14,50,000/- in cash on 14.01.2010 and Rs.6,00,000/- to be paid within 7 days. The Assessing Officer observed that the under valuation of the property was Rs.14,000/- per sq.yard. The amount of Rs.84,70,000/- was paid out of the books in which assessee’s share was worked out at Rs.42,35,000/-. The assessee was asked to explain the source of Rs.42,35,000/- invested in the property out of books. The assessee denied having paid the above said amount to M/s. Bhupeindra AutoTech Industries Pvt. Ltd. The Assessing Officer rejected the above submissions and observed that an amount of Rs.3,50,000/- was paid through cheques at the time of entering the agreement to sale and the same is mentioned in the sale agreement. Therefore, the agreement is valid one and payment mentioned in the agreement is actually made. Accordingly, he proceeded to make the addition of Rs.32,10,000/- to the returned income of the assessee.

Sh. Sunil Kumar Nagar vs. Income Tax Officer, Ward 2(4), Faridabad

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