TMI Blog2011 (3) TMI 1026X X X X Extracts X X X X X X X X Extracts X X X X ..... December 20, 2006 - The assessee failed to dispute that and could not produce any other evidence to the contrary to show that investments were actually made in different years than this - in this case, no such effort was made by the assessee because no such material was produced by him - Decided against the assessee - 325 of 2009 - - - Dated:- 14-3-2011 - ARUN MISHRA, MOHAMMAD RAFIQ, JJ. JUDGMENT Mohammad Rafiq J.- 1. This income-tax appeal has been filed by the assessee against the order dated September 30, 2008, passed by the Income-tax Appellate Tribunal (for short "ITAT"), Jaipur whereby his appeal challenging the order of the Commissioner of Income-tax (Appeals) dated September 27, 2007, was dismissed and the order o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l allowed the appeal vide its judgment dated February 27, 2006 and deleted the addition of Rs. 6,00,000 observing that the assessee may produce the evidence/material regarding investment in the property. Further, observations were made that the Assessing Officer is free to verify these investments in the year in which they are made and examine the investments as per law. 3. Shri J. K. Ranka, learned counsel further argued that mere observation of the Income-tax Appellate Tribunal in this manner could not be construed as evidence of investment made by the assessee in respect of earlier years. Learned counsel submitted that the property in question even as per the report of the District Valuation Officer was constructed during the financi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... court in the case of Pullangode Rubber Produce Co. Ltd. v. State of Kerala [1973] 91 ITR 18 (SC) to argue that the Supreme Court in that case held that even though admission or statement given by the assessee during survey proceedings may be an important piece of defence, it is not conclusive and it is always open to the assessee who has made such admission, to show that it was incorrect. 5. Per contra, Ms. Parinitoo Jain, learned counsel for the Revenue argued that notice under section 148 for reopening of the assessment of year 1999-2000 was issued because this issue was left open by the Income-tax Appellate Tribunal in its order dated February 27, 2006 while deleting the addition of Rs. 6,00,000 from the original assessment order da ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nder section 148. Notice contains reasons and also it was issued after obtaining valid sanction from the Joint Commissioner of Income-tax, Range-II, Kota. Even after service of notice under section 148, the assessee did not file his return. Notice under section 142(3) was issued and served upon the assessee on September 30, 2006. The assessee requested to supply reasons which were made available to him. Objections raised while initiating proceedings under section 148 were rejected by passing an interlocutory order and the assessee failed to put forward his claim despite repeated opportunities being given. Since limitation for making fresh assessment was to expire on December 31, 2006, the Assessing Officer was left with no alternative excep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... construction commenced in the year ending March 31, 1999, and the period of construction was financial years 1997-98, 1998-99 and 1999-2000. Accepting this plea of the assessee, the Income-tax Appellate Tribunal in that order observed that the investment in the property appears to have been completed prior to the year March 31, 2002. It was in that context that the Assessing Officer was given freedom to verify these investments in the year in which they are made and examine the investments as per law. We are therefore not persuaded to countenance the argument that the Assessing Officer was precluded from reopening the assessment by invoking section 148. The reasons demanded by the assessee were supplied to him by the Assessing Officer and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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