Amit Kumar Rai Vs ITO (ITAT Patna)
Summary: The ITAT Patna partly allowed the assessee’s appeal for statistical purposes and set aside the assessment for AY 2020-21 for de novo consideration. The assessee had declared total income of ₹3,36,240. Proceedings under Sections 147 and 148 followed information concerning an immovable property purchased with Rubi Rai and Chandra Mohan Ojha, involving ₹5 lakh paid by the assessee in cash and ₹35 lakh paid by Chandra Mohan Ojha on his behalf. The Assessing Officer added ₹5 lakh under Section 69A, treated ₹35 lakh as a deemed gift and disallowed a ₹1.5 lakh deduction under Section 80C for want of evidence. The CIT(A) confirmed these adjustments while also directing verification.
Before the Tribunal, the assessee requested an opportunity to furnish supporting evidence and sought a fresh assessment; the Departmental Representative did not raise serious objections. The Tribunal found that the assessee had supplied some information about the investment sources without supporting documents, while the Assessing Officer had made no inquiry or verification of those submissions. It also noted the CIT(A)’s direction to verify the year of execution of the sale deed. Accordingly, the Tribunal directed the Assessing Officer to frame the assessment afresh after necessary inquiry and verification, requiring the assessee to produce supporting documents and comply with hearing notices. The disputed additions and deduction claim remain subject to that fresh assessment.
FULL TEXT OF THE ORDER OF ITAT PATNA
This is the appeal preferred by the assessee against the order of the Ld. Commissioner of Income Tax (Appeals)-NFAC, Delhi (hereinafter referred to as the “Ld. CIT(A)”] passed u/s 250 of the Act dated 01.01.2026 for the AY 2020-21, vide Appeal No. NFAC/2019-20/10445966.
2. The brief facts on record are that the assessee, an individual has filed his return of income for AY 2020-21, declaring a total income of Rs.3,36,240/-. Based on credible information that the assessee has purchased immovable property along with Rubi Rai and Chandra Mohan Ojha, and that payment of Rs 5 lakh was made by the assessee in cash, and that payment of Rs. 35,00,000/- was made by Chandra Mohan Ojha on behalf of the assessee, the Assessing officer had initiated proceedings under sec. 147 of the Act. In response to the notice issued under sec. 148, the assessee filed return of income declaring the same total income. However, the assessee did not give any satisfactory explanation for the source of Rs. 5,00,000/- paid by him in cash, and for the payment of Rs. 35,00,000/- paid on his behalf by Chandra Mohan Ojha before the Assessing officer. As a result, the Assessing officer made the impugned addition of Rs. 5lakh under sec. 69A of the Act, and Rs. 35 lakh as deemed gift , and disallowed the claim of deduction of Rs.1,50,000/- under sec. 80C for want of evidence, vide his order dated 11-2-2025. The said additions were also confirmed by the Ld CIT(A) in his order dated 1-1-26 (Appeal No. NFAC/2019-20/10445996). Aggrieved, this appeal has been preferred before us.
3. The Learned AR submitted that the Ld CIT(A) while confirming the impugned additions has also directed the Assessing officer to carry out certain verification. It was represented that the assessee may be afforded an opportunity to submit all evidence in his support before the Learned Assessing officer and requested that entire assessment be set aside for de novo consideration.
4. The Ld DR did not raise serious objections.
5. We have considered the rival submissions. It is seen that the assessee has given some information before the Assessing officer regarding the source for the impugned investments but failed to file supporting documents. The Assessing Officer also did not make any inquiry or verification on the submissions made. It is also noted that the Ld. CIT(A) has directed the Assessing Officer to verify the year of execution of the sale deed. In these factual scenario , we consider it fit to set aside the impugned assessment and direct the Assessing Officer to frame the assessment de novo after necessary inquiry and verification. The assessee shall produce the supporting documents and comply to the hearing notices of the Assessing Officer.
6. In the result, the appeal of the assessee is partly allowed for statistical purposes.
Order is pronounced on 16th October, 2026
