BOBBY YOGENDRA SHARMA,MUMBAI V. COMMISSIONER OF INCOME TAX (APPEAL), MUMBAI

ITA 5672/MUM/2025

AI Insights

This case involves an appeal by Bobby Yogendra Sharma against an order passed by the National Faceless Appeal Centre, Delhi, which arose from an assessment under section 147 read with section 144 of the Income Tax Act for the Assessment Year 2013-14. The primary issue was the addition of certain amounts as undisclosed income based on entries in the Annual Information Return (AIR) system, which the assessee claimed were not disclosed to him despite repeated requests. The Tribunal found that the additions were made solely on the basis of AIR reporting without sharing the primary information with the assessee, impairing his ability to respond meaningfully.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 787499 (ITAT-MUMBAI)
• Duration Of Justice: 2 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-11-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2013-2014
• Appeal Filed On: 12-09-2025
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VAIBHAV JAIN
• Assessee Lawyers: KISHOR PATEL
• Keywords: Set aside; FORM 26AS
• Section: 147; 144

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL, ‘B’ BENCH MUMBAI BEFORE: SHRI AMIT SHUKLA, JUDICIAL MEMBER & SHRI GIRISH AGRAWAL, ACCOUNTANT MEMBER ITA No.5672/Mum/2025 (Assessment Year : 2013-14) Bobby Yogendra Sharma 102, Giriraj Heights Plot No.5, Sector 18 Khargar, Navi Mumbai- 410 210 Vs. Additional / Joint / Deputy / Assistant Commissioner of Income Tax / Income Tax Officer, National Faceless Assessment Centre, Delhi PAN/GIR No.CNYPS2314G (Appellant) .. (Respondent) Assessee by Shri Kishor Patel Revenue by Shri Vaibhav Jain, CIT DR Date of Hearing 13/11/2025 Date of Pronouncement 18/11/2025 आदेश / O R D E R PER AMIT SHUKLA (J.M): This appeal has been filed by the assessee against the order dated 04 August 2023 passed by the National Faceless Appeal Centre, Delhi, arising from the assessment framed under section 147 read with section 144 for the Assessment Year 2013–14. The addition in question has been made with reference to certain entries reflected in the Annual Information Return system. The principal grievance of the assessee is that the underlying material forming the basis of Printed from counselvise.com ITA No.5672/Mum/2025 Bobby Yogendra Sharma 2 those entries was never furnished to him, despite repeated requests. 2. The Assessing Officer noted a series of transactions reported in the AIR database in the name of the assessee and treated the entire aggregate amount as undisclosed income. The details, as recorded in the assessment order, are as under: Nature of Transaction Amount (Rs.) Agreement entered with builder or co operative society for property 7,11,281 Cash deposits aggregating two lakh rupees or more with a banking company 4,50,000 Contract of ten lakh rupees or more in the commodities exchange 3,52,97,997 Purchase of equity shares in a recognised stock exchange 4,17,22,538 Sale of equity shares settled by actual delivery in a recognised stock exchange 4,27,12,282 Total 12,08,94,098 3. The assessee, however, has explained that he was unable to respond meaningfully to the notices as the specific AIR particulars were never made available to him. The paper Printed from counselvise.com ITA No.5672/Mum/2025 Bobby Yogendra Sharma 3 book placed before us contains several communications addressed to the Department, wherein the assessee had requested copies of the AIR information, including transaction wise details and the identity of the reporting source. Those communications indicate that the assessee was making genuine attempts to obtain the material necessary for preparing a proper reply. It has also been pointed out that the Form 26AS does not reflect any such AIR entries. Nevertheless, in the absence of a response from the Department, both the assessment and the appellate proceedings culminated in ex parte orders. 4. We have considered the material on record and the circumstances in which the assessment came to be framed. It appears that the additions have been made solely on the basis of the AIR reporting, without the primary information ever having been shared with the assessee. When the foundation of an addition lies in third party data, it is important that the assessee is provided the underlying details so that he may submit a proper and informed explanation. In the present case, the absence of such information has clearly impaired the assessee’s ability to respond. In our view, it would therefore not be fair to sustain the addition without first giving the assessee an opportunity to examine the material and offer his explanation. 5. In the interest of justice, we deem it appropriate to set aside the matter to the file of the Assessing Officer. The Assessing Officer shall provide the assessee with complete particulars of each AIR entry and thereafter call for a detailed Printed from counselvise.com ITA No.5672/Mum/2025 Bobby Yogendra Sharma 4 response. The assessee, on his part, shall cooperate in the proceedings and submit all relevant material. The Assessing Officer shall thereafter re examine the matter and pass a fresh order in accordance with law after granting adequate opportunity of hearing. 6. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced on 18th November, 2025. Sd/- (GIRISH AGRAWAL) Sd/- (AMIT SHUKLA) ACCOUNTANT MEMBER JUDICIAL MEMBER Mumbai; Dated 18/11/2025 KARUNA, sr.ps Copy of the Order forwarded to : BY ORDER, (Asstt. Registrar) ITAT, Mumbai 1. The Appellant 2. The Respondent. 3. CIT 4. DR, ITAT, Mumbai 5. Guard file. //True Copy// Printed from counselvise.com "