Albert Joseph Rozario Vs ITO (ITAT Mumbai)
The appeal before the Income Tax Appellate Tribunal, Mumbai concerned the validity of reassessment proceedings for Assessment Year 2018–19 and the consequent additions made on a protective basis. The Assessing Officer (AO) initiated proceedings under section 148A after information indicated that the assessee had purchased immovable properties worth ₹8.31 crore and had not filed a return of income. A show-cause notice under section 148A(b) dated 23 March 2022 was served, granting time up to 18 April 2022 to respond. As no reply was filed, the AO passed an order under section 148A(d) on 23 April 2022 and issued a notice under section 148 on the same date, after obtaining prior approval from the Commissioner of Income Tax (IT)-4, Mumbai. The assessee subsequently filed a return declaring nil income.
During reassessment, the AO treated ₹4.47 crore as unexplained investment under section 69 and ₹1.03 crore as income under section 56(2)(x). The Dispute Resolution Panel (DRP) directed that the unexplained investment be assessed on a protective basis in the assessee’s hands, with the substantive assessment to be pursued in the case of the assessee’s wife, to avoid double taxation. The addition under section 56(2)(x) was upheld.
