2011 (10) TMI 747 - ITAT DELHI

Reopening of Case u/s 147 - AO passed the assessment order u/s 147/143(3) without serving the mandatory notice u/s 148 as per law - HELD THAT:- The reopening was also not done on account of change of opinion as prior to reopening of the assessment the case was only processed u/s 143(1). There is a live link between the information which was available with the AO and his formation of belief that income has escaped assessment. Sufficiency of such information cannot be gone into while deciding the issue of validity of reopening. The AO also cannot make any enquiry as no proceedings were pending before him for the relevant assessment year. In the above view of the matter, we are in agreement with the finding of the Ld CIT(A) that the reopening of assessment u/s 147 of the Act was valid.

Income from unexplained source u/s 68 - AO did not accept the claim of the assessee that some amount was received by her as gift from donor as donor was never produced for examination, also relationship of donor with assessee was not proved. During re-opening assessee claimed that the copy of statement of Shri Deepak Gupta in which Shri Gupta allegedly admitted that bank account of donor was maintained and operated by him for providing bogus accommodation entry was never provided to the assessee and no opportunity to cross examine the said party was also provided.

HELD THAT:- Taking into consideration the facts that the case was reopened by issue of notice u/s 148 and the fact that the revenue has not produced any evidence that the statement of Shri Deepak Gupta was confronted to the assessee during the assessment proceedings, we deem it fit to set aside the orders of the authorities below on this issue and remit the matter back to the file of the AO with the direction that the assessee be given further opportunity to produce Shri Ashok Bindal and the assessee should also be given opportunity to cross examine Shri Deepak Gupta.

A fresh order be passed as per law after complying with above directions of ours and giving the assessee adequate opportunity of being heard - Matter restored back