Smt. Poonam Rathore Vs ITO (ITAT Indore)
The Income Tax Appellate Tribunal, Indore Bench, allowed the assessee’s appeal concerning Assessment Year 2011-12 and set aside the order passed by the CIT(A). The dispute arose from an assessment framed under sections 144/147 of the Income-tax Act, 1961, in which the Assessing Officer treated ₹46,78,800 as unexplained investment under section 69. The assessee was a non-filer and the reassessment proceedings were initiated on the basis of Non-PAN AIR information relating to an immovable property transaction.
The Assessing Officer issued notice under section 148 on 20.03.2018 and subsequent statutory notices. According to the supplied material, the assessee did not comply with the notices and did not file an income-tax return in response to section 148. Further opportunities were provided through letters dated 06.08.2018 and 14.11.2018, but these were also not complied with. The assessment was accordingly completed ex parte under sections 144/147 on 21.12.2018, determining total income at ₹46,78,800.
In the first appellate proceedings, the assessee produced additional evidence, including the sale deed, bank account details, agricultural land records and other documents. The CIT(A) called for a remand report. On examination of the sale deed, the Assessing Officer reported that the assessee was one of three co-owners and therefore had a one-third share in the property. The Assessing Officer consequently proposed that the unexplained investment attributable to the assessee should be restricted to ₹15,59,600, being one-third of ₹46,78,800.
