Sanjay Shantilal Dave Vs Assessment Unit Income Tax Department (ITAT Mumbai)
The present appeal before the Income Tax Appellate Tribunal (ITAT), Mumbai, arose from an order passed by the National Faceless Appeal Centre (NFAC), Delhi under Section 250 of the Income Tax Act, 1961, for Assessment Year 2017–18. The impugned order originated from reassessment proceedings conducted by the Assessing Officer under Sections 147 read with 144B of the Act, dated 18 May 2023.
The assessee, an individual, had filed a return declaring total income of ₹9,72,270. Based on information received, the Assessing Officer noted that the assessee had purchased an immovable property at a value lower than that adopted by the stamp duty authority. Consequently, a notice under Section 148 dated 28 June 2021 was issued. Following the substitution introduced by the Finance Act, 2021, the notice was treated as one issued under Section 148A(b) in terms of the Supreme Court decision in Union of India vs. Ashish Agrawal (2022).
The reassessment proceedings culminated in additions under Section 56(2)(vii)(b) amounting to ₹37,18,572 and under Section 69 amounting to ₹67,40,000. The assessee challenged these additions before the Commissioner (Appeals), but the appeal was dismissed, and the additions were confirmed. Aggrieved, the assessee filed an appeal before the ITAT.
