ITO Vs Radhey Kishan (ITAT Delhi)
The cross-appeals by the Revenue and assessee arose from the CIT(A), NFAC order dated 24.06.2024 concerning AY 2013-14. The assessee had originally declared total income of Rs.4,30,840/-. Based on information from the Investigation Wing that the assessee had sold property for Rs.7,03,54,000/- without declaring capital gains, reassessment proceedings were initiated under Section 147 after approval under Section 151, and notice under Section 148 was issued on 31.03.2021. The Assessing Officer subsequently treated the entire Rs.7,03,54,000/- as unexplained money under Section 69A. The CIT(A) held that no addition under Section 69A could be made for the entire sale consideration, found that Rs.1,03,08,000/- had been received from the land sale, treated that amount as business income and denied the assessee’s Section 54B claim.
Before the ITAT, the assessee contended that the reassessment had been initiated on the basis of reasons concerning alleged escaped capital gains from sale of a capital asset, whereas the AO ultimately made the addition under Section 69A as unexplained receipts. The assessee also challenged the reliance on Investigation Wing material without independent verification, the non-supply of relevant material and the denial of cross-examination. The Revenue supported the reassessment and contended that the investigation established receipt of the entire consideration.
