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TMI Blog2010 (6) TMI 833X X X X Extracts X X X X X X X X Extracts X X X X ..... - for Assessment Year 2002-03, ₹ 20,270/- for Assessment Year 2003-04, ₹ 17,240/- for Assessment Year 2004-05 without pointing out the same being personal or for non-business purposes and when he is estimating income at ₹ 1,21,266/- for Assessment Year 2000-01, ₹ 1,88,061/- for Assessment Year 2002-03, ₹ 88,500/- for Assessment Year 2003-04, ₹ 88,497/- for Assessment Year 2004-05. Ld. CIT(Appeals), Valsad has also erred in sustaining the said addition. 4. Ld. A.O. has erred in making the assessment simply on the basis of the disclosure made by the appellant's son, under pressure, during the course of survey. Ld. CIT(Appeals) Valsad has also erred in confirming such assessment." 3. Ground no.4 of the appeal of the assessee for Assessment Year 2004-05 reads as under:- "4. Ld. A. O. has erred in law and on facts to add security in GNST for ₹ 5,00,000/- only on the basis of survey statement of the appellant. Ld. CIT(A) Valsad has also erred confirming the action of the A.O." 4. In Ground nos.1 and 2 of the appeal in all the years under consideration, the assessee has challenged the reopening of assessment under section 147 of the Act. A su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd also of Shri Jagdishbhai Poonamji Sandesha were recorded wherein they have stated that they purchased shops from Shri Tarunbhai Mody in cash. However, being a partner of the assessee firm, Shri Tarunbhal has not shown these receipts or income thereon anywhere in his return of income. Similarly, there are several fiats in City Palace Apartment, Jawahar Society, Halar Road either in his name or in the name of the firm M/s. Anukul Builders, Valsad in which he is a partner. M/s.Anukul Builders have constructed the building City Palace Apartment and the fiats are being sold by them year after year. However, on verification of records it is found that no returns are being filed in the case of M/s. Anukul Builders. I have, therefore, reason to believe that income chargeable to tax to the extent of the investment made in the land and building, flats and shops either in his name or in the name of somebody else whose ownership appears to be of the assessee escaped assessment and I propose to assess/reassess the income of the assessee for the A.Y. 2004-05. Submitted to the Addl. C.I.T., V.R., Valsad for approval." 6. Thereafter, the Learned Assessing Officer passed order under secti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me was regularly filed by the firm and assessed by the same officer. Regarding Anukul Builders, it was submitted that it is a separate and independent firm and any income has to be assessed in the hands of the firm and not in the hands of the assessee. He relied on the decision of the Hon'ble Gujarat High Court in the case of Sagar Enterprises Vs. ACIT (2002) 257 ITR 335 (Guj) where it was held that notice under s. 148 issued on the ground of factually incorrect basis that the assessee had not filed its return could not be sustained even on the basis of alternative reason since it could not be said with certainty as to which factor weighed with the concerned officer when he issued the impugned notice and when the respondent-authority was himself unsure as to the year of taxability of the income which is stated to be undisclosed income. 10. The Learned Departmental Representative on the other hand submitted that in the instant case, the assessment was framed under section 144 read with section 147 of the Act as the assessee did not comply with the notice issued by the Learned Assessing Officer by filing the necessary details and evidences. It is the duty of assessee to comply w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ity Palace Apartment and the fiats are being sold by them year after year. However, on verification of records it is found that no returns are being filed in the case of M/s. Anukul Builders. I have, therefore, reason to believe that income chargeable to tax to the extent of the investment made in the land and building, flats and shops either in his name or in the name of somebody else whose ownership appears to be of the assessee escaped assessment and I propose to assess/reassess Submitted to the Addl. C.I.T., V.R., Valsad for approval. Valsad Dt.3.02.2006 (Mathew Thomas K) Income Tax Officer, Ward -4, Valsad " 12. A perusal of the reassessment order as passed by the Learned Assessing Officer shows that no addition was made in respect of the issue which was recorded for reopening of the assessment. On the other hand reassessment was completed only after disallowing 20% of direct and indirect expenses which were already disclosed in the original return for want of evidences. Apart from making the addition by way of disallowances out of disclosed expenses the only other addition made in re-assessment was for the Assessment Year 2004-05 which was ₹ 5 lacs on account of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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