TMI Blog2015 (5) TMI 386X X X X Extracts X X X X X X X X Extracts X X X X ..... on mere suspicion and is on the basis of various documentary evidence. Therefore, in our considered opinion, the Ld. First Appellate Authority has also appreciated the relevant provisions as well as the facts of the case and rightly upheld the issuance of notice u/s. 148 of the I.T. Act in the case of the assesse. We are of the considered view that no interference is called for in the well reasoned order passed by the Ld. CIT(A) on the finding given by him on the issue of assumption of jurisidciton u/s. 147 and notice u/s. 148 which is valid and as per law. - Decided against assessee. Unexplained expenditure made on the marriage ceremony of the assessee’s daughter under section 69 - Held that:- The daughter of the assesse namely Jyoti Kapoor was a victim of dowry harassment by her In-laws including her husband. She has also lodged FIR. The FIR has been registered by Smt. Jyoti Kapoor, D/o of the assessee under section 498A, 406, 506, 323/34 IPC on 7.5.2002 against her husband and other family members. No doubt that the daughter of the assessee has written that her father has incurred a huge expenditure on her marriage, but she has not produced any documentary evidence that huge ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tice issued u/s. 148 is valid. 2. The Ld. CIT(A) has grossly erred on the facts of the case and in law in upholding that the reopening of the assessment u/s. 147 without recording the reason of reopening and issuing of notice u/.s. 148 of the Income Tax Act in the order sheet is valid. 3. The Ld. CIT(A) has grossly erred on the facts of the case and in law in upholding the addition made by the AO on account of unexplained expenditure not supported by any evidence but on presumption amounting to ₹ 34,13,000/-. 4. The appellant seeks leave to add or to amend the foregoing grounds of appeal if it becomes necessary to do so in the interest of justice. 2. The facts in brief are that the assessment in this case was reopened u/s. 147 and notice u/s. 148 was issued on 31.3.2009 after obtaining necessary sanction of the Addl. Commissioner of Income Tax, Range-37, New Delhi, and duly served upon the assessee. The counsel of the assessee vide letter dated 20.4.2009 submitted a photocopy of acknowledgement of having filed the Income Tax Return by the assessee for the AY 2002-03 declaring income of ₹ 1,63,480/- vide acknowledgement no. 2318 on 30.7.2002 be treated to be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ny 13.2.2002 Sapna Garden ₹ 3,26,000/- Marriage ceremony 15.2.2002 Tammana Farms ₹ 25,48,000/- Cash for Visa ₹ 40,000/- Approximate expenses which have been met / incurred on their own dress /food / ceremonies taken @20% of total expenditure ₹ 3,10,000/- Total ₹ 34,13,000/- 2.1 The AO has observed that assessee has performed the marriage of his daughter and incurred an expenditure of ₹ 34,13,000/-. The assessee has suppressed material relevant facts of the case and not furnished the satisfactory explanation regarding ceremonial functions and marriage ceremony performed in the five Star Qutab Hotel and Farm Houses on one pretext or the other. The AO by relying upon the case law of Madan Lal vs. CIT [1984] 149 ITR 533(Delhi) and in the absence of satisfactory explanation, the expenditure amounting ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under consideration. Notice u/s. 143(2) and 142(1) were issued to the assessee on 24.9.2009 fixing the case for hearing on 30.9.2009. Assessee nor his authorized representative attended. In response to the notice on 6.10.2009, Sh VK Sabharwal attended and filed a letter dated 1.10.2009 and requested for inspection of record which was accepted by him on 19.11.2009. Ld. Counsel of the assessee also requested to supply the certified copy of the certain documents which was sent to the assessee vide office letter dated 16.12.2009 by speed post. The assessee was specifically asked by a questionnaire dated 24.11.2009 for the details of the expenditure incurred on the marriage ceremony and the other ceremonial function of his daughter during the year under consideration with source and necessary evidence. On 22.12.2009 Counsel attended and filed a letter dated 21.12.2009 asking to adjudicate the legal issue to initiate proceedings under section 147 of the Act. Notice u/s. 148 was communicated to the assessee vide letter dated 24.12.2009 which the AO has reproduced at pages 2 to 4 of the assessment order. In spite of the same assessee has not furnished the documentary evidence with regard ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ere income has escaped assessment. He has also taken due approval from the competent authority, after applying their mind, the notice in dispute has been issued to the assessee. He has also recorded the reasons for such action. The AO has given his clear cut finding and satisfied himself before issuing of notice u/s. 148 of the I.T. Act. The reasons were also provided to the assessee which are not based on mere suspicion and is on the basis of various documentary evidence. Therefore, in our considered opinion, the Ld. First Appellate Authority has also appreciated the relevant provisions as well as the facts of the case and rightly upheld the issuance of notice u/s. 148 of the I.T. Act in the case of the assesse. We are of the considered view that no interference is called for in the well reasoned order passed by the Ld. CIT(A) on the finding given by him on the issue of assumption of jurisidciton u/s. 147 of the I.T. Act and notice u/s. 148 of the Act which is valid and as per law. Therefore, the issue involved in Ground No. 1 and 2 is dismissed. 8. With regard to issue involved in ground no. 3 regarding addition of ₹ 34,13,000/- made by the AO on account of unexplained e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n on the basis of the information received from the Investigation Wing. He cited the decision of Delhi Tribunal given in the case of Electric Chamber Pvt. Ltd. vs. lAC 26 ITD 236 (Delhi), and also the case of Aruna Jain vs. DCIT Circle 17(1), 21 SOT 218, where the Bench has held that, assessee should not be disqualified from providing evidences merely on the ground that the evidences were not filed before the lower authority. The A.O. in his Remand Report has stated that the Principal Officer of Hotel Qutab has stated that the hotel Qutab was acquired by Eden Park Hotels Pvt. Ltd., since the requisite bill books/ documents pertains to the period when Qutab Hotel was under administrative control of India Tourism Development Crop. Ltd. and there are very remote chances to lay hand on these, nine years old documents. So, they seek the reasonable time for locating documents and in the absence of these details being received he had held that the expenditure incurred is not verifiable and is of the view that as the assessee fails to file the original receipts for verification, so genuineness of expenditure of Roca ceremony could not be verified He had not brought on record any evidence t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nished, we really fail to understand what other evidences is required to be furnished. A.O. had further stated that the receipt no. 643 date of booking has been shown as 13.02.2001, In this regard, we find that inadvertently year 2001 instead of 2002 were mentioned by Sapna Garden as nobody will issue the receipt on 22nd December 2001 for the function to be held on prior date i.e. 13th February 2001 which was mentioned, in the receipt The facts that the function held at Sapna Garden and Assessee had paid ₹ 94,800/- was also admitted by them. The assessee has wholly discharged the onus lies on him with regard to incurring of the expenditure, the A.O. has not disputed in his Remand Report about the source of the correctness of the statement of Sapna Garden. So, there is no justification whatsoever in making these addition in the income of the assessee. Therefore, we delete the addition in dispute by accepting the explanation of the assessee. (c) As regard to Marriage expenses- Tamanna Farms (Satkar Caterers) ₹ 25,48,000/- - Ld. Counsel of the assessee has submitted that the A.O. has made addition of ₹ 25,48,000/- as marriage expense in the income of the assessee as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5,98,193/-. The assessee s contention regarding these expenses are that these expenses have been incurred from the withdrawal of the Bank account of the assessee himself, his wife Mrs. Vinod Dhawan, his son Manish Dhawan and from the joint account of assessee himself and his wife and amount contributed by Late Mrs. Janak Dulari and his family out of her agricultural income, pension and loans against the deposits. The assessee has filed the evidence supporting his claim i.e. the bank statement and other details regarding the withdrawal from the bank account during the period in dispute. The AO had made the addition on presumption and assumption and without any basis. Keeping in view of the facts and circumstances of the present case, we accept the explanation of the assessee with supporting documentary evidence which has not been negated by the Revenue Authority, therefore, the addition on account of jewellery is not sustainable and the explanation of the assessee is accepted. 8.6 Keeping in view of the facts and circumstances of the present case as discussed in the forgoing paragraphs, it is pertinent to mention here that the daughter of the assesse namely Jyoti Kapoor was a vic ..... X X X X Extracts X X X X X X X X Extracts X X X X
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