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2018 (9) TMI 1755 - AT - Income TaxReopening of assessment - validity of issue of notice u/s 148 - Held that:- The assessee has not raised the grounds relating to the issue of notice u/s 148 either in the form 35 i.e. memo of appeal or before the CIT(A) or in a separate petition for admission of additional ground with regard to validity of issue of notice u/s 148. CIT(A) has made a passing remark with regard to the validity of initiation of proceedings u/s 147 but no ground was raised by the assessee and adjudicated by the Ld.CIT(A). Therefore, the grounds raised by the Ld.AR with regard to the issue of notice u/s 148 was neither born from the Ld.CIT(A) order nor from the appeal memo under Form 35. The assessee also did not file petition for admission of additional ground. Hence, this ground is dismissed as infructuous. Unexplained investment in purchase of villas from M/s Vizag Profiles Group company - Held that:- In this case, neither the searched party has given a specific statement with regard to the receipt of money from the assessee nor the AO has collected the details of date wise payments from the Vizag Profiles Ltd. Even there the AO has not ascertained in the statement with regard to the unaccounted payment made by the assessee in the statement. Though the Managing Director has given general statement or the practice of the company with regard to the acceptance of cash component of 25% to 40% , the general statements and the observations cannot be inferred adversely against the third party without the specific information and the relevant evidence. The department has no material to hold that the assessee had made the payment of ₹ 91,27,000/- to the VGP and to make the addition of ₹ 91,27,000/- as unaccounted consideration. Accordingly we set aside the orders of the lower authorities and delete the addition made by the AO and allow the appeal of the assessee on this ground. With regard to the difference in sale consideration in the registered sale deed the Ld.CIT(A) did not make any addition since at the end of the F.Y. the consideration recorded in sale deed, the assessee’s books are reconciled with the VGP’ s books. The department also did not place any evidence to show that the assessee has made over and above the consideration recorded in the books of account during the year. Therefore we do not see any reason to interfere with the order of the Ld.CIT(A) on this issue.
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