Nova Elevators Private Limited Vs ITO (ITAT Mumbai)
The appeal before the Income Tax Appellate Tribunal (ITAT), Mumbai, arose from an order of the Commissioner of Income Tax (Appeals) [CIT(A)] for Assessment Year 2014–15, which in turn originated from a reassessment order passed by the Assessing Officer (AO) under Sections 143(3) read with 147 of the Income Tax Act, 1961. The assessee had originally filed its return declaring nil income. Subsequently, the case was reopened under Section 148, and during reassessment, the AO made an addition of ₹53,00,000 under Section 68 as unexplained cash credits and taxed it under Section 115BBE.
The assessee challenged the addition before the CIT(A), raising multiple grounds including improper application of Section 68 despite furnishing evidence to establish identity, creditworthiness, and genuineness of the lender. The assessee also alleged denial of natural justice, citing inadequate opportunity during assessment proceedings, reliance on third-party information without disclosure, lack of cross-examination, and non-consideration of submissions by the CIT(A). Additionally, the reopening of assessment was challenged as being based on borrowed satisfaction without independent application of mind.
Further, the assessee raised jurisdictional issues through additional grounds, including that the assessment order was time-barred as it was served after the statutory limitation date, that mandatory notice under Section 143(2) was not validly served, and that approval under Section 151 was mechanical and non-speaking. It was specifically contended that the notice under Section 143(2) was issued at the fag end of limitation, served only electronically, and did not provide a real opportunity of hearing.
