ITAT held that AO had no jurisdiction to frame the impugned assessment u/s 147 (of Income Tax Act, 1961)
ITAT held that AO had no jurisdiction to frame the impugned assessment u/s 147 (of Income Tax Act, 1961)
Assessee individual filed his return of income declaring income of Rs.1,33,810. In the assessement, addition of Rs 5.00 Lacs was made on account of gift received, which AO held was not genuine and Rs. 15,47,000 was added on account of unexplained cash credits. CIT(A) dismissed assessee’s appeal. ITAT held that AO had no jurisdiction to tax unexplained gifts and cash credits and frame the impugned assessment u/s 147 (of Income Tax Act, 1961).-501672
1. Assessee individual filed his return of income declaring income of Rs.1,33,810.
2. Subsequently proceedings u/s 147 (of Income Tax Act, 1961) were initiated and assessment was framed.
3. Addition of Rs. 5.00 Lacs was made on account of gift received, which the AO held was not genuine and Rs. 15,47,000 was added on account of unexplained cash credits.
4. CIT(A) dismissed the appeal of the assessee
On appeal, the ITAT held as under:
5. We hold that in this case the AO had no jurisdiction to subject to tax unexplained gifts and cash credits and frame the impugned assessment.
6. Respectfully following the above judgments, we hold that in the absence of any addition having been made on incomes which the AO had reason to believe had escaped assessment, no addition of any other income could have been made and that the AO had exceeded his jurisdiction in passing the impugned order u/s 147 (of Income Tax Act, 1961).
7. The same is liable to be quashed.
Case Reference - Sh. Anugrah Varshney Vs The Income Tax Officer.
IN THE INCOME TAX APPELLATE TRIBUNAL AGRA BENCH, AGRA
BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND
MS. ANNAPURNA MEHROTRA, ACCOUNTANT MEMBER
ITA No.134/Ag/2014
(Assessment Year:2003-2004)
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