TMI Blog2015 (7) TMI 1203X X X X Extracts X X X X X X X X Extracts X X X X ..... edings, he arrives at a conclusion that some other income has escaped assessment which comes to his notice during the course of proceedings for reassessment under section 148 of the Act. Respectfully following the ratio laid down by the Hon'ble jurisdictional High Court in the case of Majinder Singh Kang vs CIT (2012 (6) TMI 616 - Punjab and Haryana High Court) hold that reopening of the assessment was valid and, therefore, ground raised by the assessee in this appeal deserves to be rejected. Penalty u/s 271(1)(c) - Held that:- The gift said to have been received by the assessee was held to be bogus. Once that is so, the only conclusion is that the assessee had furnished inaccurate particulars of his income and the order of the Tribunal deleting the penalty is unsustainable in law. Accordingly, it is held that the assessee had concealed the particulars of income and, thus, penalty was liable to be levied against him under section 271(1)(c) of the Act. See CIT Vs. Deep Chand [2011 (2) TMI 604 - PUNJAB AND HARYANA HIGH COURT] - Decided against assessee - ITA No. 365/Chd/2011, ITA No. 1104/Chd/2014, ITA No. 1060/Chd/2014 - - - Dated:- 27-7-2015 - SHRI H.L.KARWA, HON'BLE VICE ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er by the Assessing Officer. The reasons recorded are reproduced hereinbelow: On verification of hawala payment, it was found that the assessee has received the following payment through draft from the following persons:- Date Amount Persons from whom payment has been received. 31.10.2001 3,00,750/- Shri N.K. Garg, C.A. Chandigarh The assessee has credited the aforesaid sum in its books of accounts for the year 2001-02 relevant to assessment year 2002-03. Shri N.K. Garg from whom these accommodation entries were obtained in a Chartered Accountant of Chandigarh who was claiming refund on the basis of the fake TDS certificates and was also indulging in giving entries on large scale by introducing unaccounted money of other persons in different bank accounts in his name or in the name e of his family members, resulting into escapement of income chargeable to tax. The Assessing Officer observed that as per the bank statement of the assessee in SBOP, Mandi Gobindgarh Branch bearing Account No. 01190005887 two credit entries showing amount of ₹ 3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9;ble jurisdictional High Court in the case of Jaspal Singh vs CIT (2007) 290 ITR 306 (P H), wherein it has been held that mere identification of the donor and showing the movement of the gift amount through banking channel is not enough to prove genuineness of the gift. The assessee is required to establish that the donor had the means and the gift was genuine, for natural love and affection. The facts of the present case are almost similar to the facts of the case of Jaspal Singh Vs. CIT referred to above. Respectfully following the judgements of the jurisdictional High Court in the case of Jaspal Singh v CIT and in the case of Lal Chand Kalra v CIT (supra), I do not find any infirmity in the findings of the lower authorities on this issue. 8. The next limb of the ground No.2 of the appeal is that reasons for reopening of the assessment are different from the basis on which addition was made by the Assessing Officer. Shri Surjit Singh Bhadu, Ld. Counsel for the assessee submitted that Assessing Officer had reopened the assessment by issuing notice u/s 148 of the Act on the ground that the assessee had received hawala payment of ₹ 3,00,750/- from Shri N.K. Garg, C.A. and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 008] 306 ITR 343, it may be noticed that these were the judgments rendered by the courts prior to the insertion of Explanation 3 to section 147 of the Act. In view of the insertion of Explanation 3 to section 147 by the Finance (No. 2) Act, 2009, with effect from April 1, 1989, the aforesaid judgments do not advance the case of the assessee any longer. 9. In the above decision the Hon'ble High Court held that Assessing Officer has power to make additions even on the ground on which reassessment notice might not have been issued in case during reassessment proceedings, he arrives at a conclusion that some other income has escaped assessment which comes to his notice during the course of proceedings for reassessment under section 148 of the Act. Respectfully following the ratio laid down by the Hon'ble jurisdictional High Court in the case of Majinder Singh Kang vs CIT (supra), I hold that reopening of the assessment was valid and, therefore, ground raised by the assessee in this appeal deserves to be rejected. In view of the above, I do not see any merit in the appeal filed by the assessee and therefore, the same is dismissed. ITA No. 1104/Chd/2014 (assessment yea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he donors are assessed to Income Tax and Wealth Tax and their affidavits were submitted in confirmation. However, the persons could not be produced during the assessment proceedings. The Assessing Officer, thereafter relying on the case of Jaspal Singh v CIT 290 ITR 304 (P H) and Lal Chand Kalra v CIT 172 ITR 50(P H) added these amount to the income of the assessee. The CIT(A) confirmed the addition of ₹ 3,00,000/- and ₹ 2,00,000/-= ₹ 5,00,000/- observing that the genuineness of the transactions is not proved. The persons also were not produced before the Assessing Officer despite the Assessing Officer having asked the assessee to produce the persons. No details regarding relationship of the so called donors with the assessee have been filed. 14. On going though the materials available on record I find that the issue raised vide grounds in question and the facts and circumstances of the case are similar to the issue raised and adjudicated above in the appeal of the assessee for assessment year 2002-03 in ITA No. 265/Chd/2011. Therefore, the findings given in ITA No. 365/Chd/2011 for assessment year 2002-03 shall apply with equal force to these grounds of app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1)(c) of the Act and the CIT(A) upheld the order of Assessing Officer. 19. I have heard the rival submissions and have also perused the materials available on record. It is observed that the issue is squarely covered in favour of the Revenue and against the assessee by the decision of Hon'ble jurisdictional High Court in the case of CIT Vs. Deep Chand (2011) 336 ITR 292 (P H) wherein the facts stated by the Hon'ble Court are as follows (page 293):- The facts, in brief, necessary for adjudication as narrated in the appeal, are that during the assessment year under consideration, the assessee had received a gift amounting to ₹ 1,75,000 on payment of an equal amount in cash, along with premium for arranging that gift. During proceedings under section 148 of the Act initiated against the assessee, the amount equal to the amount of the gift, i.e., ₹ 1,75,000 and ₹ 17,500 on account of premium at the rate of 10 per cent. were added to the income of the assessee. The Commissioner of Income-tax (Appeals) (in short the CIT(A) ), confirmed the order of the Assessing Officer whereas the Tribunal accepted the appeal of the assessee and deleted the penalty, vid ..... X X X X Extracts X X X X X X X X Extracts X X X X
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