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TMI Blog2011 (3) TMI 1026X X X X Extracts X X X X X X X X Extracts X X X X ..... t was framed on the basis of notice dated March 28, 2006 issued to the appellant under section 148 of the Income-tax Act, 1961 (for short "the Act") for reopening of the assessment. 2. Shri J. K. Ranka, learned counsel for the appellant has argued that a survey under section 133A of the Act was conducted at the business premises of the assessee by the income-tax authorities on January 16, 2002. On account of coercive effect and the pressure exerted by the income-tax officials, the appellant made a statement before the income-tax authorities and surrendered a sum of Rs. 6,00,000 for the assessment year 2002-03. The assessee submitted a return on October 17, 2002 declaring net taxable income of Rs. 1,33,600 along with the past history ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thorities have also given certificate of completion accordingly. Investment in the property was thus completed prior to the financial year ending on March 31, 2002. It is this argument which was accepted by the Income-tax Appellate Tribunal, therefore, the assessment could not have been reopened by recourse to section 148. The petitioner demanded reasons for reopening and subjected his objections on such reasons. Those observations were not properly understood. There is no additional or fresh material with the Assessing Officer to justify his finding regarding all these investments. Notice under section 148 was even otherwise barred by limitation. The Assessing Officer by his order dated December 22, 2006 illegally made an addition of Rs. 4 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e to verify these investments in the year in which they are made and examine the investments as per law. It cannot therefore be said that the issuance of notice under section 148 was without justification. Learned counsel submitted that though the Assessing Officer earlier included Rs. 6,00,000 in the assessee's total income on the basis of notice issued under section 143(3) of the Act for the assessment year 2002-03 as unexplained investment in house property, the Income-tax Appellate Tribunal while allowing the appeal of the assessee observed that assessee may produce before the Assessing Officer sufficient material/evidence that the investment in property was made in the financial year ending on March 31, 2002. The period of construction ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s estimated by the valuer at Rs. 5,85,000, therefore, the average investment for the assessment year 1998-99 relevant to the assessment year 1999-2000 was worked out to Rs. 4,07,800 which remained unexplained and unrecorded. The same was therefore rightly added to the income of the assessee as income from other sources. 6. Successive appeals filed by the assessee were dismissed by the Commissioner of Income-tax (Appeals) as also by the Income-tax Appellate Tribunal. It is therefore prayed that the appeal be dismissed. 7. On hearing learned counsel for the parties and considering the material on record, we find that notice under section 148 for reopening of the assessment was issued to the assessee on the basis of observation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... object of frustrating the assessment proceedings so as to ensure that the limitation for making such assessment is crossed. The Assessing Officer in his order has given detailed reasons including about the number of opportunities given to the assessee after reasons were supplied to him and ultimately notice was given to show cause as to why an ex parte assessment under section 144 of the Act may not be made in his case as he failed to comply with the notices issued to him from time to time and the date was fixed on December 20, 2006. In the notice, it was proposed to make an ex parte assessment under section 144 so as to add total amount of Rs.4,07,800 as unexplained investment in the construction of house property made in the financial yea ..... X X X X Extracts X X X X X X X X Extracts X X X X
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