The Income Tax Appellate Tribunal (ITAT) Delhi bench directed readjudication in respect of additions made under Section 69 of the Income Tax Act, 1961 towards source of investment in the purchase of immovable property by observing the ex parte addition on the unexplained investment made by the lower authority.
There was a Tax Evasion Petition (TEP) received by CCIT, Delhi against Assessee, Virender Singh along with a copy of registered purchase deed regarding purchase of 4 bighas and 16 biswal of agricultural land at Delhi.
The petition also alleged that all the payments were made in cash. This document was registered in the name of the assessee. Since the assessee did not have PAN and had not submitted his income tax returns, the case of the assessee was reopened vide issuance of notice under Section 148 of the Income Tax Act There was no response from the assessee.
Finally AO made the final show cause notice was sent to the assessee. In response, assessee filed return g income for AY 2010-11 with computation of income and sought for adjournment.
AO completed the assessment ex-parte by making an Addition of Rs 56,18,000/- as unexplained investment made in purchase of immovable property under Section 69 of the Income Tax Act.
Aggrieved by the order, the assessee filed an objection before the Commissioner of Income Tax (Appeals) [CIT(A)],
The CIT(A) issued several notices to the assessee through post and in email,but there was no response from the assessee. Therefore, the CIT(A) dismissed the appeal. Thus the assessee filed another appeal before the tribunal.
After considering circumstances of the case, the two member bench of M. Balaganesh, (Accountant Member) and Kul Bharat (Judicial Member) directed to provide one last opportunity to the assessee to explain the sources for making the investment in immovable property.
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