TMI Blog2022 (1) TMI 118X X X X Extracts X X X X X X X X Extracts X X X X ..... Act and also participated in the assessment proceedings. This itself indicates that the notice was received by the assessee - we are of the view that the ld. CIT(A) and passed a speaking order discussing all the facts and circumstances of the case, therefore, we do not find any reason to interfere into or deviate from the findings so recorded by the ld. CIT(A). Hence, we uphold the proceedings with regard to initiation of proceeding U/s 147. Unexplained cash credit u/s 68 of the Act for purchase of property - HELD THAT:- No additions can be made until and unless the evidences filed by the assessee were rebutted and discarded and by bringing any contrary evidences and materials and no addition can be made on the basis of assumption/ presumptions and guess work. Further when the husband of the assessee from the starting has confirmed of giving cash of ₹ 8.50 lacs as he is a regular income tax assessee and all the data given by him were very well available before the AO. Therefore, on the basis of the documents, no addition could be made. If the A.O. was having any doubt regarding the source of cash of ₹ 8.50 lacs by the Shri Naveen Sharma (Husband of the assessee) h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... addition was made, without providing proper and sufficient opportunity of being heard. 7. The Ld. CIT(A) has grossly erred in law facts in confirming the provision u/s 115BBE of Income Tax Act 1961. 7. The Ld. CIT(A) has grossly erred in law facts in confirming the assessment order of Ld. AO in which he wrongly stated that no one was attended on 09.11.2017 while it can be verified by the records that AR was attended and discussed the case with the learned AO and demanded some more time and the same is given by learned AO. 8. The Ld. CIT(A) has grossly erred in law and facts in rejecting the affidavits as provided by the assesse and her spouse in support of investment made in flat of ₹ 11,00,000/-. 9. That the appellant reserves his right to add, amend or alter and withdraw any grounds of appeal on or before the date of hearing of appeal. The assessee has also taken additional grounds of appeal as under: 1. Time Barred Notice u/s 143(2); The learned AO has erred in law and facts in issuing notice u/s 143(2) on 11.10.2017 whereas Income Tax Return in compliance of Notice u/s 148 issued on 26.09.2016 was filed on 17.11.2016 and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ounds of appeal being grounds No. 1 and 2 and additional grounds of appeal No. 1 and 2 respectively. In this regard, the ld. AR has reiterated the same arguments as were raised before the ld. CIT(A) and also relied on the written submissions filed before the ld. CIT(A). 8. On the other hand, the ld. DR has vehemently supported the orders of the lower authorities. 9. We have considered the rival contentions and carefully perused the material placed on record. From perusal of the record, we observed that in this case notice U/s 148 of the Act has been issued on 26/09/2016 and in response thereof, the assessee firstly has filed a letter dated 17/11/2016 enclosing the copy of IT Return with computation filed originally on dated 12/07/2013. However, the A.O. had asked the assesse through letter dated 18/09/2017 to file the return in compliance to notice U/s 148 of the Act. Thereafter the assessee has filed return of income on 09/10/2017. Thereafter, the A.O. had issued notice U/s 143(2) of the Act on 11/10/2017, thus, in our view, notice U/s 143(2) of the Act issued timely. 10. From perusal of the record, we observed that the ld. CIT(A) has dealt with the issue in para 3. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ring the appellate proceedings, the appellant raised the ground that notice u/s 148 of the Act has been issued on borrowed satisfaction and notice has not been served on the appellant. (iii) I have duly considered the submissions of the appellant, assessment order and the material placed on record. The reopening was done after properly recording the reasons and following the due procedure of law. While examining the reasons for reopening, it is important to see the nature of information rather than the source of information. Similar issue has been decided by the various judicial authorities in following cases: * In the case of M/s Amit Polyprints (P.) Ltd. Vs DCIT 94 taxmann.com 393 [2018] (Gujarat), it was held by the Hon'ble High Court of Gujarat that: Where reassessment proceedings were initiated on basis of information received from Investigation wing that assessee had received certain amount from shell companies working as an accommodation entry provider, reassessment could not be held unjustified * In the case of M/s Jayant Security Finance Ltd 91 taxmann.com 181 [2018] (Gujarat), it was held by the Hon'ble High Court of Gujarat that: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ft open to be investigated and decided by the assessing authority. The appellant will be entitled to take all the points before the assessing authority. The appeals are dismissed. (vi) The appellant has also raised the ground that notice was not served on him. It was submitted that notice was issued on old address which has been left by the appellant. It is noted from the record that the appellant never informed the AO regarding change of address. The appellant filed the return of income in compliance to notice issued u/s 148 of the Act and also participated in the assessment proceedings. This itself indicates that the notice was received by the appellant. The appellant never raised this issued before the AO during the assessment proceedings. As the appellant has participated in the proceedings, no prejudice has been caused to the appellant and therefore, this ground cannot be entertained and dismissed. (vii) To sum up, it is held that the AO was justified in reopening the case of the appellant for the year under consideration u/s 147 of the Act and was having reason to believe that income had escaped assessment. It is also held that notice was received by the appell ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ced on record. As per the facts of the present case, we observed that the assessee is a regular income tax assessee and filing her return of income. The A.O. had issued notice U/s 148 of the Act on the reason that assessee had purchased a Flat at 115B, Mahesh colony, Tonk Road Jaipur for a consideration of ₹ 16,07,295 (including registration charges). The assessee had paid consideration by Cheque of ₹ 4,00,000/- and by cash of ₹ 11,00,000/-. On being asked the source for purchase consideration, the assessee stated that the same has been paid from her own source and loan from her husband. During the course of hearing, the assessee also furnished cash flow statement which is at Page No. 2 and 3 of assessment order. The assessee also explained the source of ₹ 4,00,000/- paid from her joint bank account with husband, ₹ 8,50,000/- received from her husband and ₹ 3,57,295/- from own source and loan received from various persons. However, the A.O. has not satisfied with the above explanation of the assessee and stated that assessee has taken loan of ₹ 8,50,000/- from her Husband Shri Naveen Sharma and other persons, the date of receiving is not me ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... where the assessee has shown ₹ 2,50,000/- paid by Smt. Anjana Sharma on 07/11/2012 while ₹ 5,00,000/- and ₹ 3,50,000/- were paid by Shri Naveen Sharma on 15/10/2012 and 07/11/2012 respectively. In the revised cash flow statement filed during the appellate proceedings we noticed that opening cash balance of ₹ 5,91,156 has been disclosed and a large number of loans below ₹ 20,000/- has been shown in the above cash flow statement. In the cash flow of Shri Naveen Sharma (the husband of the assessee) again the opening cash of ₹ 5,35,192/- has been disclosed besides number of cash loans below 20,000/-. 15. After looking and considering all the above facts and details, we have observed and found that from starting the assessee has explained the source of cash ₹ 11,00,000/- from her husband Shri Naveen Sharma of ₹ 8,50,000/- and ₹ 2,50,000/- from her own. As we have noted that the assessee and her husband are regular income tax assessee and filing their return of income since AY 2005-06. As per record available before us and as per returns of the assessee, the assessee has shown income of ₹ 12.30 lacs and if it is presumed th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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