Raghvendra Rathore Vs ITO (ITAT Agra)
Wrong Door, Wrong Time: Reassessments Quashed—One Notice Was Time-Barred, the Other Bypassed Section 153C
The Agra Bench of the ITAT has quashed reassessment proceedings for two assessment years on distinct jurisdictional grounds. For AY 2019-20, notice u/s 148 was issued beyond three years even though the alleged escaped income was below ₹50 lakh. For AY 2020-21, the reassessment was based entirely upon material found during a search on another person; therefore, the Department ought to have proceeded under the special machinery of section 153C and not under the general provisions of sections 147 & 148.
The Tribunal accordingly deleted the foundation of both assessments without adjudicating the additions on merits.
Loans to P.N. Group Triggered Reassessment
A search u/s 132 was conducted on 09-01-2020 in the case of the P.N. Group, belonging to the Rathore family. Material gathered during the search allegedly showed that the assessee had advanced unsecured loans to persons or entities connected with the searched group.
For FY 2018-19 relevant to AY 2019-20, the Department alleged that the assessee deposited cash in his bank account and immediately transferred ₹18.75 lakh to Prakash Rathore/P.N. Group as an unsecured loan.
The assessee explained that the loan was advanced on interest for the borrower’s business & other needs. He furnished confirmation from Prakash Rathore, details of interest income and the relevant ledger account.
