Anmol Developers Vs ITO (ITAT Ahmedabad)
ITAT Ahmedabad imposed cost of Rs. 10,000 on the assessee due to non-compliance with the show cause notice and directed to restore the matter back to the file of Jurisdictional Assessing Officer.
Facts- The assessee is a firm engaged in real estate business. The assessee has not filed the regular return of income. On the basis of information available with the Department, it was noticed that the assessee has purchased immoveable property for a consideration of Rs. 7.22 crores, but the source of income remains unexplained. Therefore, notice u/s. 148 of the Act was issued to the assessee on 18-03-2021. The assessee has not responded to the above notice. Further, notices u/s. 142(1) were issued to the assessee on 29-12-2021, 25-01-2022 and 08-02-2022. Again, the same were not responded by the assessee firm. Therefore, a final show cause notice u/s. 144 dated 23-02-2022 was issued to the assessee as to why not to treat the purchase of immoveable property of Rs. 7.22 crores as unexplained investment. Since there was no response to the above show cause notice, AO treated the above invest-ment of Rs. 7.22 crores as unexplained u/s. 69 and added the same to the total income of the assessee and also initiated penalty proceedings u/s. 271F, 271AAC(1) and 271A(1)(d) of the Act.
