The appellant must substantiate claims of loan and misused PAN; failure to provide credible evidence upheld the assessment of undisclosed income.

ORDER

Per Laxmi Prasad Sahu, Accountant Member This appeal is filed by the assessee against the order dated 18.01.2024 of the CIT(Appeals), National Faceless Appeal Centre, Delhi [NFAC], for the AY 2015-16 on the following grounds:-

“1. The learned Commissioner of Income tax (Appeals), NFAC, Delhi has erred in passing the appellate order in the manner passed. The appellate order as passed is bad in law and is liable to be quashed.

2. The learned Commissioner of Income tax (Appeals), NFAC, Delhi has also erred in confirming the reopening of assessment by learned Assessing Officer. The conditions precedent for issue of notice U/s. 148 of I.T. Act, 1961 having not been satisfied, the reopening of assessment was bad in law and hence the learned Commissioner of Income tax (Appeals) should have instead of confirming the assessment order, quashed the reopening of assessment.

3. In any case, the learned Commissioner of Income tax (Appeals), NFAC, Delhi has erred in confirming the assessment order passed by the learned Assessing Officer. On the facts and circumstances of the case, the learned Commissioner of income tax (Appeals), NFAC, Delhi should have quashed the order passed by Assessing Officer or atleast should have deleted the additions made by the Assessing Officer.

4.1 In any case, the learned Commissioner of Income Tax (Appeals), NFAC. Delhi has erred in confirming the addition made by the Assessing officer amounting to Rs. I4,33.573/- on account of purchase of jewellery as undisclosed investments u/s 69 of the IT Act. The addition 'as made/confirmed is without any basis and is liable to be deleted.

4.2 On the facts of the appellant's case, the appellant having not purchased any jewellery or made any investment in purchase of jewellery, the addition being contrary to the facts of the appellant's case is to be deleted.

4.3 In any case without prejudice, the authorities below have erred in folding that provisions of Section 69 would apply to tile case of appellant. On proper appreciation of facts of the case and law applicable, it will be clear that there being no investment at all by the appellant, the provisions of Section 69 would not be applicable and the addition made is to be deleted.

4.4 The Assessing Officer had also erred in holding that provision of Section 115BBE of the I.T. Act, would apply to the above addition and the learned CITA) has erred confirming in the same. On the proper appreciation facts and law applicable, the provisions of Section 115BBE will be not applicable, the calculation of tax @ 30% U/s. 115BBE of the I.T. Act, 1961 being wholly erroneous is to be deleted.

5.1 The learned Commissioner of Income Tax (Appeals), - NFAC, Delhi has erred in confirming the addition made by the Assessing officer amounting to Rs. 1,55,64,500/- albeit u/s 56(2) of the IT Act instead of section 69 of the Act as done by the Assessing officer on the ground that purchase of property has been made without adequate consideration. The addition as made/confirmed is erroneous and without any basis and is liable to be deleted.

5.2 The authorities below have erred in not appreciating the fact that the appellant being one of the co-owner of the property, the provisions of section 56(2) of the Act were not applicable at all to the case of the appellant.

5.3 The learned Commissioner of Income Tax (Appeals), NEAC, Delhi has erred in invoking the provisions of section 56(2) of the Act on the ground that the appellant has purchased the property without adequate consideration. The property having been purchased for an adequate consideration, the provisions of section 56(2) of the Act are not applicable and the addition as confirmed is liable to be deleted.

6. In any case and without prejudice, the learned assessing officer has erred in confirming the addition made by the assessing officer by invoking the different provisions of the Act. Such an action is contrary to the law appli