Vijay Maneklal Bhansali Vs ITO (ITAT Mumbai)
Sections 147/148 remain applicable if AO opts not to invoke Section 153C: ITAT Mumbai upholds addition under Section 68 of ₹4.89 Cr.
The case of Vijay Maneklal Bhansali vs. ITO revolves around the reassessment under Sections 147/148 of the Income-tax Act, 1961, and the addition of ₹4.89 crore under Section 68. The appellant, Vijay Maneklal Bhansali, challenged the reassessment order citing procedural and jurisdictional lapses by the Assessing Officer (AO). The ITAT Mumbai addressed the legal and factual aspects of the case, affirming the AO’s approach in making additions based on clarified information.
The reassessment was initiated on grounds of transactions involving Yashwi Commodities Pvt. Ltd. However, during the proceedings, it emerged that the transactions were linked to Jet Air Agencies Pvt. Ltd. The appellant argued procedural lapses, particularly the AO’s failure to dispose of objections to the recorded reasons for reassessment. The tribunal found no merit in these claims, emphasizing that the AO had rectified errors in identifying the correct sub-broker and that the appellant had confirmed the transactions in question.
The appellant also contended that Section 68 was misapplied, as the amount added did not reflect in the books or bank accounts. The tribunal dismissed this argument, observing that the transactions were book-entry-based commodity futures with settlement through net profit or loss adjustments. The ITAT upheld the addition, relying on the appellant’s own admissions and the documentary evidence presented by the AO.
