TMI Blog2014 (1) TMI 749X X X X Extracts X X X X X X X X Extracts X X X X ..... 013, ITA Nos. 292 to 294/CTK/2013, ITA Nos. 230 to 232/CTK/2013 - - - Dated:- 10-6-2013 - Shri K. K. Gupta, AM And Shri George Mathan, JM,JJ. For the Petitioner : Shri S. Ray/G. Naik/S. K. Sarangi, ARs For the respondent : Shri N. K. Neb, Sr. DR ORDER Per Bench:- ITA Nos., 227 to 229/CTK/2013 are appeals filed by the assessee and ITA Nos. 292 to 294/CTK/2013 filed by the revenue against the order of CIT(A) in the case of Sajal Kumar Roy. ITA Nos. 230 to 232/CTK/2013 are appeals filed by the assessee against the order of CIT(A) in the case of Smt. Ila Roy. As all the appeals are interconnected the same are being disposed of by this common order. 2. S/Shri S. Ray/G. Naik/S.K. Sarangi, ARs appeared for the assessee and Shri N. K. Neb appeared for the revenue. 3. ITA Nos. 227 to 229/CTK/2013 and ITA No.292 to 294/CTK/2013, the assessee has raised the technical ground of reopening. Consequently, the same was heard first. It was submitted by the Ld. AR that the reasons recorded for reopening was that the assessee was running three educational institutions under the name and style of City English Medium School in his individual capacity along with his wife Smt. Ila ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... verify as to whether the reasons as has been shown in pages 3 and 4 of the assessee's paper book which is extracted above, was the reasons as recorded by AO. He was also directed to verify whether any assessments have been done in the case of the EGMES. 4. In reply, the Ld. DR submitted that the reasons as recorded shown at pages 3 and 4 of the paper book and as extracted above, was the reasons as recorded. It was however, the submission that the society namely EGMES has not been filing its returns nor any assessment has taken place in its case. It was the submission that the AO had received a Tax Evasion Petition and it was on the investigation of the Tax Evasion Petition it was found that the assessee and his wife were running the three schools. It was the submission that consequently the AO had assessed the income of the three schools in the hands of the assessee and his wife. It was the submission that the reopening was liable to be upheld. 5. We have considered the rival submissions. At the out set, a perusal of the reasons recorded clearly shows that the AO has recorded his reasons on the basis of the enquiries conducted in the case of the assessee in pursuance to Tax Ev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... schools are being run by the society EGMES and the same having been admitted by the assessee in a statement in response to a notice u/s. 131of the Act, the AO would be at liberty to assess the income of the three schools in the hands of the correct person in accordance with law. As we have quashed the reopening, we are not going into merits of the additions. 6. In the appeal filed by the assessee Smt. Ila Roy, the assessee has challenged the reopening of the assessment by issuance of notice u/s. 148 of the Act. At the time of hearing, the Ld. AR drew our attention to pages 3 and 4 of the paper book, which is a copy of the reasons recorded on 29.03.2010. In the reasons recorded, it is mentioned that the assessee has put up a colossal building with large amount of investment and the rental income is approximately Rs.80,000/- per month. It is also mentioned that the assessee has never disclosed the rental income derived. She has also not disclosed her income by way of salary. It was the submission that all the reasons which have been mentioned in the reasons recorded are wrong and the reasons recorded itself was erroneous and liable to be quashed. It was the submission that the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... claims joint ownership with her spouse, but it is clear from the Form No. 165 issued by Adhunik Metalliks Ltd. the tenant, it is cledar that the 'A' is the sole owner of this building. On verification it came out that the 'A' has never disclosed the rental income derived from Adhunik Metalliks Ltd. nor claimed credit for the TDS affected amounting to Rs.1,08,768/-. Not only that, the 'A' has never disclosed her income by way of salary earned by her in the capacity of Principal, City English Medium School. In view of the above, I have reason to believe that income chargeable to tax amounting to Rs.24,00,000/- (Rs. 12 lac rental income + Rs.12 lac salary income) has escaped assessment. Hence, issue notice u/s. 148." A perusal of the reasons shows that three issues have been raised for the purpose of reopening. The first issue admittedly, is the cost of construction of the building at Rourkela, the second issue is the rental income of the property and the third issue is salary earned by her in her capacity as Principal, City English Medium School, which is said to have never been disclosed. Admittedly, the AO says he has conducted necessary enquiries. What is the necessary ..... X X X X Extracts X X X X X X X X Extracts X X X X
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