PVR Engineering Co. Vs ITO (ITAT Surat)
The assessee appealed against the order of the Commissioner of Income Tax (Appeals) confirming an assessment framed under Section 143(3) read with Section 147 of the Income-tax Act, 1961 for AY 2011-12. The Tribunal first condoned a delay of 128 days in filing the appeal after accepting the assessee’s explanation that the appellate order, served electronically, had not come to his notice due to limited knowledge of online proceedings and that the appeal was filed immediately after discovering the order.
The reassessment had been initiated following information received from the Deputy Commissioner of Income Tax, Central Circle, Ahmedabad, alleging that the assessee had obtained a cash loan of ₹12,00,000 from Sant Shri Asharamji Ashram Trust and repaid ₹2,60,000 during the relevant financial year. Based on this information, the Assessing Officer reopened the assessment under Section 147 by issuing a notice under Section 148 and ultimately made an addition of ₹2,60,000 as unexplained money.
During the assessment proceedings, the assessee requested copies of the incriminating documents forming the basis of the reopening, sought an opportunity to cross-examine the authorised person of the trust, and also sought a copy of the satisfaction note recorded for reopening. The assessee further contended that the alleged loan related to an earlier assessment year. The Assessing Officer rejected these requests and completed the reassessment, which was subsequently upheld by the CIT(A).
