आयकर अपीलीय अधिकरण “बी” न्यायपीठ पुणे में ।

IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, PUNE BEFORE SHRI R.K. PANDA, VICE PRESIDENT AND MS. ASTHA CHANDRA, JUDICIAL MEMBER आयकर अपील सं . / ITA No.1656/PUN/2024 धििाारण वर्ा / Assessment Year : 2010-11 Satish Vishnu Thombare, Varsha Prafulla Zende, Income Tax Officer, Prop of Bleach Chem Enterprises, Ward-1, Ahmednagar Vs. Industrial Estate, Shrirampur, Maharashtra-413709 PAN : AABPZ2541C अपीलार्थी / Appellant प्रत्यर्थी / Respondent Assessee by : Miss Shivani Shah (Virtual)

Department by : Shri Akhilesh Srivastva Date of hearing : 06-08-2025 Date of 29-10-2025 Pronouncement : आदेश / ORDER PER ASTHA CHANDRA, JM :

The appeal filed by the Revenue is directed against the order dated

07.06.2024 of the Ld. Commissioner of Income Tax (Appeals), NFAC, Delhi [“CIT(A)/NFAC”] pertaining to Assessment Year (“AY”) 2010-11.

2. Briefly stated the facts are that the assessee is an individual engaged in the business of supply of chemicals. For AY 2010-11, the assessee had filed her original return of income on 17.09.2010 declaring total income at Rs.8,95,759/-. A search and seizure action u/s 132(1) of the Income Tax Act, 1961 (the “Act”) was conducted on 02.07.2013 in the case of one, Shri Anand Kumar Sharma. The Ld. Assessing Officer (“AO”) received information on 31.03.2017 from the office of ACIT, Central Circle-2(1), Kolkata regarding the accommodation entries taken by the assessee from Shri Anand Kumar Sharma for commission through his shell company and in the said information the name of the assessee was mentioned. Based on the said information, the assessee’s case was reopened wherein, the Ld. AO made an addition u/s 68 of the Act amounting to Rs.2,58,67,123/- vide order dated 30.12.2017 passed u/s 147 r.w.s. 143(3) of the Act. Before the Ld. CIT(A)/NFAC, the assessee challenged the above addition made by the Ld. AO on legal ground as well as on the merits of the case. The Ld. CIT(A)/NFAC allowed the appeal of the assessee vide his order dated 14.11.2019 holding that the notice issued u/s 148 of the Act was based upon palpably incorrect reasons and was bad in law and accordingly legal ground raised by the assessee was allowed. Aggrieved by such order of the Ld. CIT(A)/NFAC, the Revenue filed an appeal before the Tribunal wherein the Tribunal discussed the below mentioned two issues and remanded the matter back to the file of the Ld. CIT(A)/NFAC. As regards, the first issue relating to the validity of issue of notice u/s 148 of the Act, the Tribunal held that the initiation of the reassessment proceedings was done on the basis of the incorrect reasons recorded and accordingly the notice issued u/s 148 of the Act was bad in law. As regards, the second issue relating to the non-compliance of requirement of section 151 of the Act while issuing the notice u/s 148 of the Act, the Tribunal remanded the matter back to the file of the Ld. CIT(A)/NFAC with a direction to adjudicate the matter within the stipulated time mentioned therein for the reason that the assessee had submitted additional evidence in support of this claim and this issue was not raised earlier before the Ld. CIT(A)/NFAC and hence was not adjudicated by him. During the remand proceedings, the Ld. CIT(A)/NFAC after perusing the reply and supporting documentary evidences filed by the assessee allowed the appeal of the assessee holding that notice u/s 148 of the Act is issued on the basis of incorrect reason recorded and reassessment proceedings was initiated without complying with the requirement of section 151 of the Act. The relevant findings and observations of the Ld. CIT(A) is reproduced below :

“6. Findings & Decision

6.1. I have carefully gone through the assessment order u/s 147 r.w.s.143(3), appellate order of CIT(A)-2, Pune, order of Hon‟ble ITAT, Pune, written submissions of the assessee and the documents furnished. 6.2. During the appellate proceedings before CIT(A)-2 Pune, the assessee submitted that the reasons record