Raj Kumar Dogra Vs ITO (ITAT Chandigarh)
ITAT Deletes Section 69 Addition Because Cash Payment Allegation Lacked Evidence; Reopening Under Section 148 Invalid Due to Incorrect Facts and Non-Application of Mind; Addition Based on Unconfronted Third-Party Material Violates Natural Justice; Banking Channel Payments Defeat Allegation of Unaccounted Cash Transaction; Mechanical Approval and Lack of Statutory Compliance Make Reassessment Unsustainable; ITAT Chandigarh Says Suspicion Cannot Replace Evidence in Reassessment Proceedings; Reassessment Proceedings Set Aside Because Revenue Failed to Establish Nexus With Search Material.
The appeal before the Income Tax Appellate Tribunal Chandigarh concerned the validity of reassessment proceedings initiated under Sections 147 and 148 of the Income-tax Act, 1961 and the addition of ₹13,55,000 under Section 69 on account of alleged cash payment for purchase of a commercial property.
The assessee, a Hindu Undivided Family, had filed its return for Assessment Year 2019-20 declaring income comprising interest income and agricultural income. The case was reopened through notice under Section 148 dated 31 March 2023 on the basis of information categorized as High Risk CRI/VRU cases. According to the reasons recorded, the assessee had allegedly paid ₹13,55,000 in cash over and above the recorded consideration for purchase of a commercial unit in the International Trade Tower, Chandigarh project.
