Babita Chelawat Vs DCIT/ACIT (ITAT Indore)
The appeal before the Income Tax Appellate Tribunal (ITAT), Indore, was filed by the assessee against the order of the Commissioner of Income Tax (Appeals) for Assessment Year 2012–13, confirming an addition of ₹2,30,806 as unaccounted income arising from alleged unexplained investment in shares.
The assessment was originally completed under Sections 143(3) read with 147, wherein the Assessing Officer (AO) made the addition based on information that the assessee had engaged in transactions involving shares of M/s Alpha Graphics, treated as suspicious. The CIT(A) upheld the reopening of assessment, holding that the AO had sufficient tangible material and a prima facie belief that income had escaped assessment. The CIT(A) also rejected the assessee’s contention regarding lack of opportunity, observing that notices under Sections 143(2) and 142(1) were issued and submissions were considered. Further, the CIT(A) held that the assessee had already admitted non-genuineness of certain transactions under the Income Disclosure Scheme (IDS), and therefore, the addition was justified.
Before the Tribunal, the assessee challenged both the validity of reassessment and the addition. A delay in filing the appeal was condoned after the Tribunal accepted that the delay was due to lack of awareness of the electronically served order and was not intentional.
