9911796707
TMI Blog2014 (10) TMI 1022X X X X Extracts X X X X X X X X Extracts X X X X ..... ses of the assessee on 8.3.2010. As found during the course of survey, the assessee had started construction of a centralized air-conditioned function hall with an investment of around Rs. 1 crore. Thereafter, on 1.11.2010, the assessee filed his return of income for the year under consideration, declaring total income of Rs. 1,68,740, apart from agricultural income of Rs. 2,20,000. During the course of assessment proceedings, the issue relating to investment made by the assessee in the construction of the function hall was examined by the Assessing Officer and in the assessment completed under S.143(3) read with S.147, vide order dated 30.12.2011, the total income of the assessee was computed by the Assessing Officer at Rs. 36,85,970, afte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he construction of the function hall. It was explained that while examining the issue relating to the investment made by the assessee in the construction of function hall, the Assessing Officer analysed the bank deposits and withdrawls from the IndusInd Bank and the deposits with State Bank of Hyderabad and came to the conclusion that the source of deposits with State Bank of Hyderabad to the extent of Rs. 35,17,229 was not properly explained by the assessee. It was submitted that the Assessing Officer however, was duly satisfied with the deposits found to be made in the bank account of the assessee with IndusInd Bank and the genuineness of the said deposits was accepted by him, after considering the entries in the said bank account as well ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ources of these remittances as well as the nature of such credits etc. If these deposits represent remittances from abroad, there should be supporting evidence in the form of confirmation of the senders alongwith authentication of such documents by competent Authority for treating the said document as genuine. Without such authentication from the Competent Authority, any document emanating from outside India has no evidential value. Therefore, the AO failed in his basic duty to examine these aspects while completing scrutiny assessment. Hence by doing so, there is error crept in the assessment order framed by the Assessing Officer which is prejudicial to the interest of the revenue and deserves to be set aside and the Commissioner is empowe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aw from USA, the same was not verified by the Assessing Officer by making proper and sufficient enquiries. He contended that there was thus an error in the assessment made by the Assessing Officer, which was prejudicial to the interests of the Revenue and the said assessment was rightly set aside by the learned Commissioner, exercising the power conferred upon him under S.263 with a direction to the Assessing Officer to redo the same as per law. 9. We have heard the arguments of both the sides and also perused the relevant material on record. It is observed that a survey under S.133A was carried on in the case of the assessee, during the course of which the assessee was found to have made investment in the construction of a function hall. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ows that the explanation offered by the assessee in support of source of investment made in the construction of function hall was considered and dealt with by him at page 2 as under- "On 29.08.2011 the assessee Sri Ganna Sarvaiah filed a letter Dt.01-11-2010 in this letter it is stated by him that he returned the business income under Sec.44AF and he purchased a plot for Rs. 53,000/- on 09-02-2009 and started construction of Function Hall after obtaining permission from Grama Panchayathi on 15-12-2008. And the sources for the construction for this function hall are from the amounts sent by his son and daughter-in-law who are in USA. It is also stated by him that the amounts so received from USA were directly entered in his Indusind Bank A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ccount as explained by the assessee as the money received by him from his son and daughter in law in USA through proper banking channel was accepted by the Assessing Officer, after applying his mind. In our opinion, it, therefore, cannot be said that the source of deposits found to be made in the bank account of the assessee with IndusInd Bank was not verified by the Assessing Officer and there was an error in the order of the Assessing Officer, as alleged by the learned Commissioner of Income-tax in his impugned order under S.263. If the learned Commissioner contemplates that the Assessing Officer should have enquired into the source of funds in the hands of the son and daughter-in-law of the assessee, the same, in our opinion, would amoun ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
