Assessee failed to furnish Bank Statement before AO: Delhi HC remands Reassessment Proceedings triggered based on TEP to AO [Read Order]

In a significant ruling,  the High Court (HC) of Delhi remanded the reassessment proceedings triggered based on Tax Evasion Petition (TEP) to Assessing Officer (AO).

Pradeep Verma, the petitioner challenged the notice dated 25.05.2022 issued under Section 148A(b) of the Income Tax Act, 1961.The principal allegation levelled against the petitioner is that he had purchased immovable property worth Rs. 3 crores during the Financial Year 2013-14 [Assessment Year (AY) 2014-15], whereas he had filed a return in which the income declared was Rs.3,16,540/-.

The record shows that the reassessment proceedings have been triggered based on information received by the respondent/revenue via a Tax Evasion Petition (TEP). A perusal of the order dated 22.07.2022 passed under Section 148A(d) of the Act shows that the Assessing Officer (AO) has noted the contention of the petitioner, which is that he had not purchased an immovable property worth Rs. 3 crores.

The petitioner indicated that he had filed his bank statement for the relevant period to demonstrate that he had not purchased immovable property worth Rs. 3 crores and the bank statement was not placed on record.  The petitioner claimed that this bank statement was transmitted to the AO via email. It was found that the petitioner claims that he jointly purchased an immovable property worth Rs.45,00,000/-, along with Mr Radheyshyam.

The petitioner avers that he has a half-share in the said property and that he had paid towards his half-share, on 26.08.2013, money amounting to Rs.22,50,000/- via a banking instrument. It is claimed that this aspect was disclosed by the petitioner in his Income Tax Return (ITR). 

The Court comprising Justice Rajiv Shakdher and Justice Tara Vitasta Ganju observed that the petitioner has been remiss in not placing the bank statement before the AO. The AO proceeded based on the allegation made in the TEP.  The record shows that the petitioner has taken the stand that he has purchased a half-share in an immovable property worth Rs. 45,00,000/-.

The Court remanded the matter to the AO to consider the stand of the petitioner about the allegation made in the TEP. 

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