Pawan Kumar Sharma Vs ITO (ITAT Delhi)
AIR Triggered 147 Fails: Confirmations, FDRs & Capital Withdrawals Save Assessee -Ex Parte 147 Cannot Survive When Evidence Speaks- No Unexplained Investment: ITAT Accepts Complete Fund Flow, Assessment Annu
In this appeal of Pawan Kumar Sharma Vs ITO, arising from reassessment framed u/s 144/147 in connection with an AIR-based purchase of immovable property for ₹70,00,000, Tribunal noted that the assessment was completed ex parte & the Ld. CIT(A) confirmed ₹55,00,000 despite detailed additional evidence demonstrating complete explanation of funds. During appellate proceedings, Assessee produced confirmations, bank statements, FDR maturity proofs, agricultural & rental income of father, confirmations from friends, partner, firm, ITRs, capital withdrawals from partnership firm Nirmaan Infrastructure, director’s remuneration & recoveries from Sarla Aluminium Structure Pvt Ltd, and receipts from his proprietorship concern Sarla Glass Traders.
Tribunal observed that these evidences clearly established availability of funds & discharge of onus u/s 68. Tribunal further noted that Ld. CIT(A) erred in overlooking crucial receipts, including ₹7,00,000 from Nirmaan Infrastructure, and amounts received from corporate & proprietorship concerns which were supported by PAN-based documentation, ITRs, bank statements & confirmations. On holistic examination, Tribunal held that all sources were satisfactorily explained and the partial confirmation of addition by Ld. CIT(A) was unsustainable. The addition was accordingly deleted in full and the appeal of the Assessee was allowed.
