Raja Varshney Vs DCIT (ITAT Delhi)
The Delhi Bench of the Income Tax Appellate Tribunal allowed the appeal filed by Raja Varshney against the order of the Commissioner of Income Tax (Appeals), Delhi, dated 12.02.2024, arising from the assessment order dated 29.12.2022 under Section 143(3) of the Income Tax Act, 1961 for A.Y. 2021-22. The assessee had originally filed his return on 08.03.2022 declaring total income of Rs. 1,03,88,430. His case was selected for scrutiny and notices under Sections 143(2) and 142(1) were issued.
A search and seizure action was conducted on 06.01.2021 in the case of the Hans group. During the search, a mobile phone belonging to Shri Vaibhav Jain was seized. According to the Assessing Officer, WhatsApp chats found on the mobile contained an image showing total sale consideration of Rs. 1,54,50,000 relating to a property at B-132, First Floor, Vihar, Delhi. The property had been registered for Rs. 49,00,000, and the AO concluded that the assessee had made an undisclosed cash investment of Rs. 1,05,50,000. The amount was added under Section 69 read with Section 115BBE, resulting in total income being determined at Rs. 2,09,38,430.
Before the Tribunal, the assessee challenged, among other matters, the jurisdiction of the AO to frame the assessment under Section 143(3) instead of Section 153C. The assessee also raised additional grounds contending that the assessment was liable to be quashed in the absence of notice under Section 153C and because the proceedings had not complied with the mandatory provisions of that section.
