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2015 (6) TMI 425 - AT - Income TaxAddition on account of gift received - reopening of assessment - Held that:- As regarding sufficiency of reasons recorded, we find that at the time of issue of notice, the detailed reasoning is not required as detailed reasoning can only be given after hearing the assessee. The A.O. had definite information through Investigation Wing of the Department that assessee along with his brother had taken bogus gifts therefore, this reason itself is sufficient to ascertain the correct facts. At the time of issuance of notice, the A.O. only needs a prima facie view that some income had escaped assessment. As regards the Revenue had not made necessary efforts to serve notice in the ordinary course before taking resort to notice by affixture, we find that notice server has clearly submitted a report that notice could not be served despite various visits. It is not required to note down time and date of visit on every visit. If he submits a report regarding non service of notice, it is a sufficient compliance for making alternative arrangement of serving the notice. As notice was issued before sanction, is also devoid of merit as receipt of sanction by A.O. on 01.06.2001 by post does not mean that A.O. was not conveyed sanction telephonically or otherwise. Thus notice u/s 148 has been rightly served upon the assessee - Decided against assessee. It has been established that NRE account of donor Shri Subhash Sethi was being used for the purpose of making bogus gifts as the alleged donor has himself stated before Enforcement Directorate that he had not made any gift to any person in India out of his said NRE account as he has not remitted any money from abroad into this account. As noted by Ld. CIT(A) a letter dated 07.08.1995 written by alleged donor Shri Subhash Sethi denying any gift to any person in India finds mention in the order of Enforcement Directorate dated 27.06.2002. We further find that in the case of brother of assessee, Shri Ved Prakash Chug, similar addition has been made and was confirmed by Ld. CIT(A) vide his order dated 01.08.2003. As per the statement of Ld. A.R., he was not aware of the status of any appeal filed by Shri Ved Prakash Chug before the Tribunal wherein Ld. D.R. categorically stated that the issue had attained finality in that case as no appeal was preferred by Shri Ved Prakash Chug before the Tribunal. The appellant also could not establish as to what was the relationship between donor and appellant, and what was the occasion on which gift was alleged to have been given. In view of above facts and circumstances, we do not find any infirmity in the order of Ld. CIT(A) as regards merits of the case. Therefore, addition sustained by Ld. CIT(A) is confirmed - Decided against assessee.
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