Tribunal directs fresh evaluation of claim regarding bank account linkage under Section 147 reassessment proceedings.
In a recent decision by the Income Tax Appellate Tribunal (ITAT) Jaipur Benches, the appeal filed by Buniya Amin against the Income Tax Officer (ITO), Ward-2(2), Kota, has been partially allowed, granting the appellant another opportunity to present evidence regarding a disputed bank account. The Tribunal, presided over by Smt. Annapurna Gupta, AM and Shri Narinder Kumar, JM, delivered the judgment on December 24, 2025, underscoring the necessity of fair procedure in tax reassessment cases.
The case revolves around the reassessment of Buniya Amin’s income for the assessment year 2017-18 under Section 147 of the Income Tax Act, 1961. Originally, the Assessing Officer added a sum of Rs.76,31,100 to Amin's income as "unexplained money," linked to cash deposits in three bank accounts, purportedly associated with Amin's PAN.
Amin contested the assessment, claiming no affiliation with one of the accounts at The Kota Central Co-operative Bank Ltd, which held a deposit of Rs.33,01,300. His plea, initially presented during the appellate proceedings, was dismissed by the Commissioner of Income Tax (Appeals) [CIT(A)], who noted the absence of corroborative evidence such as KYC records or a verified bank document.
Arguing for a reassessment, Amin's representative highlighted procedural lapses and sought a chance to substantiate the claim of non-ownership of the bank account. The Tribunal acknowledged the appellant’s failure to engage during the initial assessment but emphasized the importance of providing adequate opportunity for evidence submission, especially when claims arise during appellate proceedings.
Consequently, the Tribunal set aside the CIT(A)'s decision and remitted the matter back for reevaluation, directing the appellate authority to allow Amin to substantiate his claim regarding the bank account. This decision not only provides Amin with another opportunity to contest the tax addition but also reinforces procedural fairness in reassessment proceedings.
Bottom Line:
Income Tax - Reassessment under Section 147 of the Income Tax Act, 1961 - Opportunity to Assessee - Tribunal held that in cases where the assessee claims no connection with a bank account linked to their PAN and such claim is raised for the first time during appellate proceedings, the appellate authority should allow the assessee an opportunity to substantiate the claim with necessary evidence.
Statutory provision(s): Income Tax Act, 1961 Section 147, Section 69A
Buniya Amin v. ITO, (ITAT)(Jaipur Benches) : Law Finder Doc Id # 2835407
