Rinki Singh Vs ITO (ITAT Ranchi)
The appeal was filed by the assessee against the order dated 28.12.2024 passed by the National Faceless Appeal Centre (NFAC)/Commissioner of Income Tax (Appeals) for the Assessment Year 2018–19. The assessee sought relief against the reassessment order passed under Section 147 read with Section 144B of the Income Tax Act, 1961, and requested that the addition made by the Assessing Officer and the related penalty proceedings be set aside.
In the reassessment order dated 30.03.2023, the Assessing Officer determined the total income of the assessee at Rs. 23,56,250/-. An addition of Rs. 21,11,500 was made under Section 56(2)(x) of the Income Tax Act. The addition was made on the ground that the assessee had purchased a residential flat—Flat No. B/2, 2nd Floor, Sai Heritage, Block No. 2, Ghorabandha Telco, Jamshedpur—on 13.03.2018 for a consideration of Rs. 10,45,000, while the stamp duty value of the property was Rs. 31,56,500. The difference between the purchase consideration and the stamp duty value was treated as taxable income under Section 56(2)(x).
The assessee challenged the assessment before the Commissioner of Income Tax (Appeals). However, the CIT(A) dismissed the appeal on technical grounds. The appellate authority held that the assessee had failed to pay advance tax as required under Section 249(4)(b) of the Income Tax Act while filing the appeal in Form 35. Since the return of income had been filed belatedly and the advance tax was not paid, the appeal was dismissed.
