Case Law Details
Kirti Bipin Thorat Vs ITO (ITAT Pune)
Introduction: The case of Kirti Bipin Thorat vs. ITO, as heard by the Income Tax Appellate Tribunal (ITAT) Pune, revolves around the assessment for the assessment year 2014-15. The appeal was preferred by the assessee against the order of the Commissioner of Income Tax (Appeals) [CIT(A)] dated 23.01.2018. In this case, there are two primary issues: the reopening of the assessment under section 147/148 and the disallowance of an addition of Rs. 26,68,060. The latter pertains to unaccounted income received in cash concerning the sale of shares.
Detailed Analysis:
1. Reassessment Proceedings: The CIT(A) examined the issue of reassessment proceedings and found that the assessee was given ample opportunities to present their case before the Assessing Officer (AO). Both the CIT(A) and the AO conducted the reassessment proceedings within the legal framework, and the AO recorded proper reasons for the reassessment. It was also noted that the assessee’s authorized representative agreed during the appellate proceedings that the AO provided adequate opportunities during the assessment proceedings. Consequently, the ITAT upheld the CIT(A)’s findings regarding the reassessment proceedings.
2. Addition of Unaccounted Income from Share Sale: The crux of this issue lies in a search and seizure action conducted under section 132 of the Income Tax Act on the Sinhgad group of cases, including Jay Shriram Sugar and Agro Products Ltd. (JSAPL). The assessee and her family members were major shareholders in JSAPL. The seized documents contained transactions related to the assessee, specifically pertaining to the sale of 43,934 shares in JSAPL. The shares were sold to Shri Maruti N. Navale and group at Rs. 60 per share, amounting to Rs. 26,36,040. Additionally, an extra amount of Rs. 17,76,960 was paid to the assessee in cash in the financial year 2013-14, which was not disclosed.
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