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2014 (12) TMI 293 - ITAT DELHIValidity of reopening of assessment u/s 147 – Held that:- CIT(A) was rightly of the view that upon receipt of a letter from DCIT Central Circle 19 New Delhi, the AO had bonafide reasons to re-open the assessment by issue of a notice u/s 148 - the loan transactions were worked out and in the absence of these appearing in the returned income, there was reason to believe that income had escaped assessment and therefore action u/s 147 was inevitable - prima facie there was some material on the basis of which the assessment could be re-opened - as decided in Raymond Woolen Mills Ltd v ITO [1997 (12) TMI 12 - SUPREME Court], the ‘correctness or sufficiency of the material' is not a thing to he considered at the stage of re-opening the assessment – Decided against assessee. Addition u/s 69 – Documents found from third party can be made the basis of addition or not - Held that:- The AO has made the additions – the documents cannot be made a sole basis to make additions in the hands of the assessee - These papers are found from third party - There is no nexus established of such papers with the assessee - mere resemblance of name in a loose, unsigned hand written sheet found and seized from a third party, having no connection with the assessee, cannot be the basis to fasten a burden on the assessee, so as to explain the source of such purported investment - the AO was duty bound to provide opportunity of cross-examination of the witness who have alleged that there was investment by the assessee - there is nothing which implicates the assessee. -The only nexus as emanating from the said statement is restricted to an oblique reference to one “Hari Sanker Khemka, narayana, in the statement of Shri Ram Avtar Gupta, accountant of BM Group - There is nothing to establish that the person is the assessee, who during the assessment proceedings have denied that he is not the person referred by Ram Avatar Gupta - the assessee is not from Narayana, but from cloth market Delhi – Decided in favour of assessee.
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