Konda Giri Goud Vs ITO (ITAT Hyderabad)
The Hyderabad ITAT allowed the assessee’s appeal against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, arising from an assessment completed under Section 147 read with Section 144B of the Income Tax Act, 1961 for Assessment Year 2018-19. The assessee challenged, among other grounds, the validity of the reassessment proceedings, contending that the notice issued under Section 148 beyond three years from the end of the relevant assessment year had been issued without approval from the specified authority prescribed under Section 151.
The reassessment proceedings were initiated after the Assessing Officer received information that the assessee had deposited ₹12,97,000 into a court account during March 2018 towards sale consideration for purchase of a plot but had not filed a return of income. Notice under Section 148 dated 08.04.2022 was issued, following which the assessee filed a return declaring income of ₹2,24,010. During assessment, the Assessing Officer found that the assessee did not have sufficient bank balance on the relevant date to make the payment. The assessee explained that the amount was sourced from current income, past savings and savings of family members. The explanation was not accepted, and the Assessing Officer treated ₹12,97,000 as unexplained expenditure under Section 69C, determining the total income at ₹15,21,010. The CIT(A) upheld the assessment.
