Abhishek Nagarmal Jangid Vs PCIT (Central) (ITAT Nagpur)
Summary: The appeal was filed by the assessee against the order of the PCIT (Central), Nagpur passed under Section 263 of the Income-tax Act, 1961 for Assessment Year 2018-19. The assessee had originally declared income of Rs.5,82,720/- in the return filed on 23.10.2018. The assessment was subsequently reopened under Sections 147 and 148, pursuant to which the assessee filed a return declaring income of Rs.9,13,980/-.
A search and seizure action under Section 132 was conducted in the case of Dr. Rahul Mahajan on 20.02.2019. Documents seized during the search revealed cash payments exceeding one crore allegedly made by Dr. Rahul Mahajan to the assessee for construction of Chinmay Hospital and a residential building. Thereafter, a survey under Section 133A was conducted and the assessee’s statement was recorded under Section 131 on 03.04.2019. The assessee voluntarily offered additional income of Rs.13,00,000/- comprising Rs.8,00,000/- towards unrecorded sales and Rs.5,00,000/- towards initial investment.
The Assessing Officer completed assessment under Section 143(3) read with Section 147, making an addition of Rs.5,00,000/- and assessing total income at Rs.14,13,980/-. Subsequently, the AO proposed revision under Section 263 on the ground that the assessment was erroneous and prejudicial to the interests of Revenue. The PCIT issued notice under Section 263 identifying, inter alia, failure to make inquiries or verification which should have been made and failure to inquire into the claim.
