Rajnibhai Bhogilal Desai Vs ITO (ITAT Ahmedabad)
Reassessment Based on Third-Party Laptop Data Remanded for Fresh Hearing: ITAT Ahmedabad
The case was reopened u/s 147 based on seized data from a search in the case of Rameshbhai B. Shah group, where a Lenovo laptop contained Tally data of 65 entities, including the Assessee. AO, relying on this, issued notice u/s 148 & assessed total income at Rs.1.12 crore, including additions of Rs.59.32 lakh as undisclosed capital & Rs.52.16 lakh as unexplained cash expenditure .
Initially, CIT(A) annulled reassessment, which was upheld by Tribunal but later set aside by Gujarat HC, permitting AO to reframe assessment. AO then passed reassessment order after disposing of objections. On further appeal, CIT(A) dismissed case ex-parte due to repeated non-compliance & also confirmed additions on merits, holding seized Tally data showed undisclosed capital, cash receipts & unexplained expenditure .
Before Tribunal, Assessee sought condonation of 376 days’ delay, explaining that his earlier consultant failed to inform about CIT(A) notices as they were sent to consultant’s email. Tribunal condoned the delay, noting cause was bona fide. On merits, Assessee argued that proceedings were invalid since AO failed to follow s.153C (third-party search assessments) & relied only on loose sheets/Tally data seized from another person without corroboration or cross-examination.
