2023 (9) TMI 383 - ITAT DELHI

Reopening of assessment u/s 147 - As assessee argued that the notice u/s 148 was issued at a wrong address and there was no application of mind by the assessing authority, as the reason for reopening of the assessment as per the AO was that the assessee had purchased immovable property - HELD THAT:- Validity of initiation of proceedings for reopening of assessment is concerned, AO was having some information regarding purchase of immovable property. The assessee had not filed his return of income. Therefore, the AO was justified in initiating the proceedings u/s 147 of the Act. The assessee stated that the notice was issued on a wrong address. However, it is on record that the assessee has participated in the proceedings. Therefore, this ground also lacks merit.

Addition u/s 69A - As stated by the assessee that assessee was having only source of income being the agriculture income. AO has not brought any other material on record suggesting that the assessee was having any other income. Assessee had clearly stated that the amount was also received from his father.

AO picked up the statement partly and did not consider the fact that the father of the assessee was having a bigger piece of land. The authorities below have not made any verification of the statement made in the affidavit of father of the assessee that he had also sold trees out of which he gifted money to his son. Therefore, considering the totality of facts and in the absence of any material rebutting the averments made in the affidavit of father of the assessee, AO was not justified in making the impugned addition and rejecting the plea of the assessee that he had also received money from his father apart from the agricultural income. Appeal of the assessee is partly allowed.