Bobby Yogendra Sharma Vs ACIT/ITO (ITAT Mumbai)
AIR-Based Additions Made Without Sharing Underlying Data—Ex-Parte 147/144 Set Aside; AO Directed to Provide Full AIR Particulars & Re-do Assessment
The Assessee challenged the NFAC order dated 04.08.2023 arising from an ex-parte reassessment u/s 147 r.w.s. 144, wherein the AO treated ₹12.08 crore as undisclosed income based solely on Annual Information Return (AIR) entries.
Facts & Additions
The AO noted multiple AIR-reported transactions and, without receiving any explanation from the Assessee, added the entire aggregate amount:
- Property agreement – ₹7,11,281
- Cash deposits – ₹4,50,000
- Commodity contracts – ₹3,52,97,997
- Purchase of equity shares – ₹4,17,22,538
- Sale of equity shares – ₹4,27,12,282
Total: ₹12,08,94,098
The Assessee repeatedly requested the specific AIR information, transaction-wise details, and the identity of the reporting entity, but the Department never furnished the material. Even Form 26AS did not show any such entries. As a result, both the assessment and the appellate proceedings concluded ex-parte.
Tribunal’s Findings
The ITAT held that:
- Additions were made solely on AIR data,
- Underlying primary information was never shared,
- The Assessee’s ability to respond was seriously impaired,
- When additions are grounded in third-party information, natural justice requires furnishing the full details before making adverse conclusions.
The Tribunal observed that the Assessee made genuine attempts to obtain the information, and the authorities proceeded without providing essential material.
Tribunal’s Direction
In the interest of justice, ITAT:
