TMI Blog2017 (5) TMI 76X X X X Extracts X X X X X X X X Extracts X X X X ..... of the assessee. As far as addition of ₹ 3,47,391/- is concerned, the assessee has shown it as opening cash balance. She has submitted that she was a graduate taking tuition and she has savings from many years - Held that: - the AO ought to have not doubted total capital balance. He should have given a credit of her past savings. Considering these aspects, we are of the view that at the most a sum of ₹ 1,47,391/- could be treated as unexplained opening capital balance and a benefit of ₹ 2,00,000/- representing small savings in the past out of non-taxable income could be estimated. The ground raised by the assessee is partly allowed. Penalty on alleged concealed income of ₹ 3,47,391/- - Held that: - According t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by the DDIT (Invt.), Valsad on 13.2.2009. In his statement he has disclosed investment of ₹ 2 lakhs in mutual fund in F.Y.2004-05 in the name of Smt.Kashmira G. Desai. Similarly, he disclosed an investment of ₹ 1 lakhs against purchase of office space at 401, Amar Chambers, Valsad. Armed with this information, the AO had issued notice under section 148 of the Income Tax Act on 20.3.2012. The AO has reopened the assessment, and after hearing the assessee passed an assessment order on 11.2.2013. Before the ld.CIT(A) the assessee did not challenge reopening of the assessment. The assessee has raised this ground of appeal for the first time before the Tribunal. The reasons recorded by the AO for reopening of the assessment has be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent of income in the hands of the assessee was obtained by the AO to form a belief that income has escaped assessment in her hand. In his second fold of submissions, he contended that in the assessment order, the AO has not made addition on account of investment in mutual fund as well as investment in purchases of office space. The AO has made addition of unexplained opening capital balance. According to the ld.counsel for the assessee expression and employed in section147 prohibits the AO to make any addition of the income unearthed during the reassessment proceedings unless an addition is being made of the amounts for which assessment was reopened. In other words, if the AO has not made any addition on account of unexplained investment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion and due to this reason, he made addition of unexplained opening balance. This unexplained opening balance can easily take care of the investment made by the assessee during this year and for this reason, there was no need to make double addition. Similarly, as far arguments of the ld.counsel for the assessee that her husband has disclosed investment and assessment ought to be reopened in his case is concerned, he disclosed the fact about purchases of mutual fund in the name of the assessee as well as purchase of office space. This is an information which can easily empower the AO to form an opinion that income has escaped in the hands of the assessee. The asset was in the name of the assessee. Had the case of the assessee s husband been ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... balance and a benefit of ₹ 2,00,000/- representing small savings in the past out of non-taxable income could be estimated. The ground raised by the assessee is partly allowed. 9. In the next appeal, grievance of the assessee is that the ld.CIT(A) has erred in confirming penalty of ₹ 1,02,103/- which has been imposed on the alleged concealed income of ₹ 3,47,391/-. 10. With the assistance of the ld.representatives, we have gone through the carefully. It emerges out from the record that the assessee has disclosed a capital balance of ₹ 3,47,391/-. According to the assessee she was not having income exhibiting taxable limit in the past, but she has made small savings. When she filed the return for this year, she c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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