Ibrahim Abdul Rashid Sheikh Vs Ward 42(1)(2) (ITAT Mumbai)
No Faceless Intimation, No Valid Assessment – Assessee’s Silence Cannot Cure the Department’s Procedural Default
Background
The assessee filed his return of income for Assessment Year 2018-19 declaring business and professional income of ₹4,75,422 and income from other sources of ₹2,64,070.
Based on information available with the Department, the Assessing Officer noticed that the assessee had purchased an immovable property at Borivali, Mumbai, for a consideration of ₹54 lakh, whereas its stamp-duty value was ₹73,95,277. The difference of ₹19,95,277 was proposed to be brought to tax.
As the assessee did not respond to the notices issued during the assessment proceedings, the Assessing Officer completed the assessment ex parte under section 144 read with section 144B and made an addition of ₹19,95,277, representing the difference between the stated purchase consideration and the stamp-duty value.
The assessee also failed to participate in the appellate proceedings. Consequently, the CIT(A) passed an ex parte order confirming the addition.
The assessee carried the matter before the Mumbai Tribunal.
Additional Legal Ground Before the Tribunal
Before the Tribunal, the assessee did not initially contest the merits of the addition. Instead, he raised an additional legal ground challenging the validity of the entire assessment.
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