2021 (2) TMI 937 - ITAT ALLAHABAD - Income Tax

Head Note / Extract:
Validity of reopening of assessment - Assessee argued that AO eopened the assessment by issuing notice u/s. 148 and passed the ex-parte order u/s. 144 r.w.s. 147 - unexplained investment in mutual fund - HELD THAT:- AO has recorded in the assessment order that assessee filed his reply dated 12.05.2014 explaining the circumstances under which the assessee received the money it was initially invested into the fixed deposit and thereafter the maturity amount was invested into mutual fund. These facts were recorded by the Assessing Officer of the assessment order. AO has also recorded this fact that the notice issued through post was received back with the postal remark that the addressee has shifted to Delhi and not residing at Mirzapur. Therefore, these facts were in the knowledge of the Assessing Officer that the assessee has shifted to Delhi. Since the assessment order was passed ex parte and the Ld. CIT(A) has also not verified the relevant record therefore, in the interest of justice, the matter is set aside to the record of the AO for proper verification of the evidences, bank statement of the assessee as well as the other evidences to be filed by the assessee along with the explanation of the source of investment in the mutual fund - Appeal filed by the assessee is allowed for statistical purposes.