TMI Blog2013 (10) TMI 1183X X X X Extracts X X X X X X X X Extracts X X X X ..... Trust that same was not genuine and that income belongs to the assessee - Income Tax Officer could not have assessed income in the hands of the assessee unless the Trust, which was assessed to which income was not found to be genuine. Once the Trust was assessed and that the order setting aside the assessment was restored and the application was also dismissed, the income could not have been assessed in the hands of the assessee and in this regard notice, which did not spell out whether it was issued under Section 147 (a) or 147 (a) (b) was not valid – Decided against the Revenue. - Income Tax Application Defective No. - 39 of 1996 - - - Dated:- 23-10-2013 - Hon'ble Sunil Ambwani And Hon'ble Surya Prakash Kesarwani,JJ. For the Petit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r telephone numbers have not been given. The source of the income of the trust have not been sufficiently explained. The identity of the persons, who had deposited the cash, which was received by the Trust between 9.6.1983 to 17.10.1983 was not established. The assessee also did not furnish photocopy of the bills received from the parties for any trade made with them nor details of such trade was given. The assessee was required to file details of the business done by the trust. In the written reply no details of the parties from whom cash was received was given. The entire income shown in the affidavit of the assessee was thus added to his personal income under Section 69A of the Act as unexplained income. The appeal filed by the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nitiation of action u/s 148 on the ground that the income of the assessee has escaped assessment. The learned CIT (A) has further held that there is no finding in the case of the trust that the same is not genuine and that the income belongs to the assessee. According to the CIT (A) the enquiry ought to have been made in the case of the trust and if on the basis of any material it were found that the trust is not genuinely created then the deposits could be considered in the hands of the assessee. No reasons were found to be available for initiation of action u/s 148. On these facts, re-assessment proceedings had been held to be invalid." The Commissioner of Income Tax has sought reference on the questions of law as follows:- "(1) Wheth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... side and were thereafter restored against which an application for reference was rejected. The additions, if any, could have been made in the hands of the Trust by way of rectification. The material available with the Income Tax Officer was not sufficient for initiating action under Section 148 on the ground that income of the assessee has escaped assessment. There was no findings in the case of the Trust that same was not genuine and that income belongs to the assessee. Shri Shambhu Chopra submits that there is a finding recorded by the A.O. that the Trust is not genuine in as much as it was not registered and source of income of the Trust were not proved and thus it was not necessary to apply for rectification of the assessment in the h ..... X X X X Extracts X X X X X X X X Extracts X X X X
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