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2023 (10) TMI 844 - AT - Income TaxReopening of assessment u/s 147 - Addition u/s 68 - unexplained gifts - HELD THAT:- Reasons recorded for reopening of the assessee’s case are insufficient, vague, un-corroborative to form a belief that the income had escaped assessment as there was no link between the tangible materials and the formation of belief of the Assessing Officer that the income had escaped assessment. Thus, the reassessment made u/s 143(3) read with section 147 of the Act based on such reasons is bad in law and accordingly, the reassessment is quashed. Unexplained gifts - As observed that in the course of reassessment proceedings the AO recorded statement of both father in law and mother in law who have also confirmed the gifts given to the assessee who is the husband of their only daughter. However, this was disbelieved by the AO as there were some discrepancies in the gift deeds for which the assessee filed affidavits from the donors before the CIT(A) which were totally ignored by him. AO never denied that the father in law and mother in law of the assessee were not in possession of agricultural land of 6.5 acres - since the donors of the gifts are closely related to the assessee being father in law and mother in law and the sources were also explained the gifts cannot be disbelieved. Appeal of assessee allowed.
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