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2018 (6) TMI 217 - AT - Income TaxReopening of assessment - Unexplained purchase of land - Held that:- The document relied on by the AO has no mention or information relating to unexplained investment or passing on of unaccounted payment to the vendors by the assessee. The said document bearing No.A/SLT/3/39 has no relevance on the assessee in as much as there was no mention of the assessee names and they are not parties to the agreement. Therefore, we hold that the reopening of assessment u/s 147 of the Act is bad in law and accordingly, we quash the notice issued u/s 148 of the Act and the consequent assessment made u/s 147 r.w.s. 143(3) is cancelled. Additions made by AO for unexplained investment relating to purchase of the land - Held that:- The agreement was signed by the vendors and does not bear the signature of the vendee, hence the said agreement cannot be held as valid agreement - the agreement was neither signed by the assesses nor their names were mentioned, thus the assesses have never become the parties for the agreement and no other material is available to show that the assessee’s have paid the consideration over and above the consideration recorded in the sale deed, thus there is no material in the case for forming a belief to hold that there was an escapement of income in the hands of the assessee - mere suspicion, presumption, surmises are not sufficient reasons to reopen the assessment - thus there is no case for making addition u/s 69 - Decided in favor of assessee.
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