IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH “I”, MUMBAI BEFORE MS. PADMAVATHY S, ACCOUNTANT MEMBER AND SHRI RAJ KUMAR CHAUHAN, JUDICIAL MEMBER ITA No. 1102/M/2025 Assessment Year: 2015-16 Mr. Sanand Sankardas, Income Tax Officer B-03 Om Siv Society, Int. Tax, Datar Colony, Ward 4(2)(1), Vs.

Ashok Nagar Road, Room No. 632, Bhandup (E), Kautilya Bhavan, Mumbai-400042. Mumbai-400051.

PAN: BORPS0620C (Appellant) (Respondent)

Present for:

Assessee by : Shri Aditya Ramachandran, A.R.

Revenue by : Shri Krishna Kumar, D.R.

Date of Hearing : 19.06.2025 Date of Pronouncement : 27.06.2025 O R D E R Per : Raj Kumar Chauhan, Judicial Member:

1. This appeal is directed against the assessment order dated 17.12.2024 passed on the directions of Ld. Dispute Resolution Panel (in short the Ld. DRP) dated 05.12.2024 wherein addition of Rs.36,12,173/- u/s 69 of the Income Tax Act, 1961 (in short ‘the Act’) was made to the total income of the Assessee.

2. Brief facts as culled out from the proceeding of authority below that the Assessee is an individual having residential status as non-resident during the financial year 2014-15 relevant to the assessment year under consideration. It was observed from the department portal that during the year under consideration i.e. A.Y. 2015-16, the Assessee has made investments to purchase immovable property valued at Rs.39,62,714/-, time deposit of Rs.30,36,720/-, TDS statement interest other than interest on securities of Rs.3,56,823/- and TDS statement, payment made to non-resident u/s 195 of Rs.2,28,760/-. From the e-filing portal of the department it was noticed that the Assessee had filed return of income for the year under consideration which caused escapement of income from assessment to the tune of Rs.75,85,076/-. The case of the Assessee was reopened within the provision of section 147 of the Act by issuing notice u/s 148 of the Act dated 20.04.2022. The Assessee filed return of income in response to notice issued u/s 148 of the Act on 11.05.2022 declaring income of Rs.5,85,620/-. Further, statutory notices u/s 142(1) of the Act dated 21.04.2024, 11.03.2023 and notice u/s 133(6) of the Act dated 08.04.2023 and 30.10.2023 were issued and served upon the Assessee. The Assessee has filed part reply to these statutory notices and therefore show cause notice dated 15.03.2024 was issued and served upon the Assessee wherein the Assessee failed to avail the opportunity of filing submissions/explanation. The Assessee failed to comply with any of the statutory notices issued during the course of proceedings u/s 148A of the Act and no requisite details were furnished and the AO proceeded on the matter on the basis of the material available on record as the matter was getting time barred by limitation on 31.03.2024. Accordingly, the best judgment assessment was carried out within the provision of section 144 of the Act. Since the Assessee failed to submit any explanation for purchase of immovable property valued at Rs.39,62,714/- and time deposit of Rs.30,36,720/- totaling to Rs.69,99,460/-, hence the said sum was added to the total income of the Assessee u/s 69 of the Act as unexplained investment. The penalty proceedings were also initiated. Accordingly, draft assessment order was passed u/s 144C(1) of the Act and was forwarded to the Assessee for exercising the option as provided in section u/s 144C(2) of the Act.

3. The Assessee filed objection before the Ld. DRP stating:

Firstly, that the AO has passed the draft order without considering the reply submitted on the portal on 18.03.2024 against the show cause notice issued and also not considered the previous reply submitted on portal on 17.03.2023 and 20.02.2024; secondly, the Assessee being non-resident and working in Dubai, UAE from which he had made direct remittance for purchase of property in Kerala and the money transfer receipts and all the relevant documentary details were already provided; thirdly since the income had never accrued or arisen in India th