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2020 (7) TMI 365 - AT - Income TaxValidity of the reassessment proceedings - eligible reasons to believe - Unexplained income u/s.68 - HELD THAT:- Assessee had turnover of more than ₹ 40 lakhs, but she had not filed the return of income along with the tax audit report. Therefore, the AO was reasonable in believing that there was escapement of income and in issuing the notice u/s 148 of the Act. Contention of the assessee that the CIT(A) had deleted addition for which assessment has been reopened and, therefore, the assessment fails is also not acceptable. AO has made an addition on the very ground on which assessment is reopened, but the said addition has been deleted by the CIT(A). Thus, the decisions cited by the Ld.Counsel for the assessee are not applicable to the case before us. The CIT(A)’s acceptance of assessee’s contention does not fail the validity of the reassessment proceedings itself. Therefore, the additional grounds of appeal raised by assessee are rejected. Unexplained source of investment - assessee has received funds through banking channels from her brother. Therefore, the identity and genuineness of the transaction is proved. Since the identity and genuineness is proved and the relationship between the donor and donee is also proved, I am convinced that the assessee has been able to explain the sources of investment. The assessee has shown ₹ 1 lakh as her own earnings which is not accepted by the department without any basis find that the assessee being the wife of a Defense Personnel, could not be said to not to have the savings of ₹ 1 Lakh. Therefore, the entire addition of ₹ 13 lakhs is deleted. The grounds of appeal of assessee on this issue are allowed. - Appeal decided partly in favour of assessee.
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