Sh. Sukhvir Singh Vs ITO (ITAT Amritsar)
The appeal was filed against the order of the National Faceless Appeal Centre (NFAC)/CIT(A), which had confirmed additions of ₹29,00,000 under Section 69A on account of cash deposits in bank accounts and ₹64,644 on account of accrued interest for Assessment Year 2011-12. The appeal before the ITAT was filed with a delay of 17 days, which was condoned.
The assessee challenged the validity of the reassessment proceedings initiated under Sections 147 and 148 of the Income Tax Act. The case had been reopened on the basis of AIR information alleging that the assessee had deposited cash of ₹17,00,000 in a savings bank account maintained with Capital Local Area Bank. Based on this information, the Assessing Officer issued a notice under Section 148 on 23.03.2018 and subsequently completed the assessment under Section 144 read with Section 147, making additions of ₹29,00,000 towards cash deposits and ₹64,644 towards savings bank interest, resulting in assessed income of ₹29,64,640.
The assessee contended that the notice under Section 148 was not properly served. According to the assessee, service was attempted through affixture after local enquiries suggested that he was residing abroad in the USA. It was argued that the procedure prescribed under the Code of Civil Procedure for service by affixture had not been followed. The assessee also submitted that he could not respond to subsequent notices because they were never effectively served upon him.
