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2014 (3) TMI 400 - AT - Income TaxRe-opening of assessment u/s 147 of the Act – Addition made u/s 69 of the Act – Held that:- The AO issued notice under section 148 of the Act instead of invoking provisions of section 153C, the proceedings stand vitiated - When it was pointed out that section 153C is not applicable in the instant case because the documents/books of account seized do not belong to the assessee, the learned counsel for the assessee did not seriously press his contention but raised an alternative plea that even for initiation of proceedings under section 148 of the Act. Revenue could not furnish the contents of the assessment made in the case of D.Y. Patil group or the reasons recorded in the Settlement Commission’s order - It is not known as to whether the D.Y. Patil group has accepted the cash entries as unexplained income in their hands or claimed it as donations received from students - No material could be placed to indicate that in the case of educational institutions it is a standard practice to collect donations and in fact donations were collected from several parties and some of them have accepted that they have made the payment and in respect of others proceedings were initiated by the Assessing Officer’s concerned. The explanation of the assessee with regard to would not be of any help to justify the reduction of addition - This also shows the lacklustre attitude of the AO and the routine manner in which addition was made by the AO, which was routinely approved by the CIT(A) - The assessee consistently pleaded before the Tax Authorities that no material was placed before him and no opportunity was given to him to controvert the material collected by the AO, which was the basis for making the addition - In the absence of any material placed by the revenue, there is no basis for making the addition – also, in the absence of any efforts made by the Revenue it may not be proper after long lapse of time to send back the matter for further investigation as it would amount to paying premium by the assessee for lethargy of the Revenue – thus, the additions made by the AO set aside – Decided partly in favour of Assessee.
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