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2016 (6) TMI 591 - AT - Income TaxReopening of assessment - non filing of return - Unexplained investment - Source of income - agriculture income or not - Held that:- The assessee has not been filing the return. In other words, he had never filed return. The AO got information that the assessee has made investment in LIC. The investment was of ₹ 15 lakhs. Once the assessee was not filing the return, then, there is no mechanism with the AO to verify the source of such investment. It can only be verified by inquiring from the assessee, and therefore, he has to issue notice under section 148 of the Income Tax Act. We do not see any error in the reopening of the assessment. - Decided against assessee. Unexplained investment - whether the agriculture land of roughly 16 acres could generate income, out of which, ₹ 15 lakhs can be spared for investment ? - Held that:- The AO took guidance of income from the bills of sale of sugar cane. It is to be appreciated that bills came to the possession of the assessee, because, sugar cane was sold to cooperative sugar mill, where mandatory bills were raised. Otherwise, in rural background, hardly any bills were issued for sale of crop or sale of plants. Possibly, there cannot be any evidence in the possession of the assessee, because, he was not operating in a very large scale in an organized manner. He has produced bank statement for the last three years. In such situation, onus was upon the Revenue to demonstrate that assessee has some other source of income, out of which, he has generated ₹ 15 lakhs. The stand of the assessee is that he has no other source except agriculture income. He has saved this income from agriculture operation. Now, it is for the Revenue, who has alleged that the assessee has some other source of income. But, the ld.AO failed to bring any evidence on record to demonstrate generation of such income, apart from agriculture activity. If we go by circumstantial evidence, then, 16 acres of agriculture land along with running of a nursery, could generate ₹ 15 lakhs over a period of time. The AO ought to have not doubted the stand of the assessee.- Decided in favour of assessee.
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