Venkagouda Krishnagouda Patil Vs Assessment Unit (ITAT, Panaji Bench)
Reassessment Clock Had Only 14 Days Left—AO Arrived 38 Days Late; Notice u/s 148 & ₹22.72-Lakh Addition u/s 69 Quashed
A Flat Purchase Triggers Reassessment
The Assessee filed his return declaring income of ₹14,90,870. During a survey u/s 133A at the premises of M/s Lotus Landmarks Pvt. Ltd., certain loose sheets were impounded.
According to the Department, these papers indicated that the company had received unaccounted cash of ₹22,71,792 from the Assessee in connection with his purchase of a flat.
The Assessee’s case was reopened & an original notice u/s 148 was issued on 16.06.2021 under the old reassessment regime. After the Supreme Court’s decision in Union of India v. Ashish Agarwal, the notice was treated as a deemed show-cause notice under the substituted section 148A(b).
A fresh notice u/s 148A(b) was issued on 23.05.2022, granting time until 08.06.2022. Thereafter, the AO passed an order u/s 148A(d) on 29.07.2022 & issued a fresh notice u/s 148 on 30.07.2022.
Cash Payment Denied, but Addition Made
During reassessment, the Assessee denied having paid any unaccounted cash of ₹22.72 lakh. The AO did not accept the explanation & completed assessment u/s 147 r.w.s. 144B on 15.05.2023, determining total income at ₹37,62,662.
