Khurshid Ahmad Dar Vs ITO (ITAT Amritsar)
The appeal in Khurshid Ahmad Dar Vs ITO (ITAT Amritsar) pertains to the Assessment Year 2017-18. The assessee challenged the order passed by the Commissioner of Income Tax (Appeals), NFAC, Delhi, dated 31.07.2024, which arose from the NFAC’s order under Sections 144 r.w.s 147 of the Income Tax Act, 1961, dated 10.11.2016. The assessee contested the addition of ₹1,02,35,000 made by the Assessing Officer (AO) on account of cash deposited in a current account under Section 69A, and the legality of reassessment proceedings initiated under Section 148.
The assessee raised multiple grounds of appeal. First, it was contended that the CIT(A) erred in upholding the AO’s addition under Section 69A. The assessee also argued that the notice under Section 148, issued on 13.04.2021, failed to comply with the amended procedure under Section 148A effective from 01.04.2021. The AO did not issue the mandatory show-cause notice under Section 148A(b) or pass the requisite order under Section 148A(d). Furthermore, the notice was only uploaded on the IT portal and was not served on the assessee’s registered email ID, which was a statutory requirement under Section 282. This failure was claimed to violate principles of natural justice, depriving the assessee of a fair opportunity to respond.
