The Income Tax Appellate Tribunal, Delhi Bench ‘D’, adjudicated the appeal filed by the assessee against the reassessment order passed under Section 147 read with Section 144 of the Income-tax Act, 1961 for Assessment Year 2015-16.

The case was reopened on the ground that the assessee had purchased an immovable property for ₹54,48,060/- and that TDS statement reflected payment of consideration amounting to ₹33,47,450/-. The assessee did not file a return of income in response to the notice issued under Section 148 and did not respond to multiple notices issued under Section 142(1) and show-cause notices. Consequently, the Assessing Officer completed the assessment and made additions of ₹54,48,060/- or alternatively ₹33,47,450/-.

Aggrieved, the assessee preferred an appeal before the Tribunal. It was submitted that the assessee is a non-resident and citizen of the United States and had not rendered any services in India during the relevant assessment year. The assessee contended that the source of investment in the immovable property stood duly explained through banking channels, including funds from bank accounts maintained in the United States, loan from HDFC Bank, and repayment of loan instalments through an SBI NRE account.

It was further submitted that the additional evidence filed by the assessee had been admitted by the Dispute Resolution Panel and that the Assessing Officer ignored the directions of the DRP while passing the assessment order.

The Tribunal observed that despite the reconciliation of payments and documentary evidence demonstrating the source of investment, the Assessing Officer proceeded to make the additions. The Tribunal held that the additions made were not just, fair, reasonable, or legal, particularly in view of the documentary evidence and banking trail placed on record.

Accordingly, the Tribunal set aside the additions made by the Assessing Officer. The grounds of appeal relating to the additions were allowed, while the additional jurisdictional grounds, not pressed by the assessee, were dismissed. In the result, the appeal of the assessee was partly allowed.

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