Afzal Abubaker Mitha Vs ITO (ITAT Nagpur)
The Nagpur Bench of the Income Tax Appellate Tribunal (ITAT) restored an issue relating to alleged unexplained investment of ₹29,53,840 to the file of the Jurisdictional Assessing Officer (JAO) for fresh adjudication after observing that the assessee had not received adequate opportunity before the lower authorities. The appeal arose from an assessment order passed under Section 143(3) read with Section 254 of the Income Tax Act for Assessment Year 2009-10.
The assessee challenged the addition on the ground that the investment was from explained sources and that the additions were confirmed in violation of principles of natural justice. The assessee also contended that although the Tribunal had earlier allowed the appeal for statistical purposes, the Assessing Officer observed that the ITAT had not discussed the issue of addition of ₹29,53,840.
The Tribunal noted that in the earlier round of litigation, it had accepted that the assessee was engaged in the business of purchase and sale of flats and directed the Assessing Officer to decide the matter afresh. Pursuant to those directions, the Assessing Officer examined transactions relating to three immovable properties. With respect to two properties, the Assessing Officer accepted the assessee’s claim and computed business losses. However, in relation to a third property measuring 2.60 hectares sold on 17.03.2009 for a market value of ₹77 lakh, the Assessing Officer disputed the source of investment of ₹29,53,840, although the sale consideration itself was accepted.
