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TMI Blog2022 (5) TMI 277X X X X Extracts X X X X X X X X Extracts X X X X ..... aranasi (hereinafter called "the tribunal"), reads as under : "1. Because the learned Assessing Officer has erred and acted illegally in adding back the deposit of Rs. 5,00,000/- &Rs. 5,00,000/- received from Shri Zahagir Alam (since deceased) &Shri Jitendra Kumar respectively. The ld. CIT(A) has erred and acted illegally in confirming the same. 2. Because the notice u/s 148 of the I.T.Act, 1961 is barred by limitation. 3. Because the order is bad both on facts and law and not maintainable." 3. The brief facts of the case are that the department based on information that the assessee has made investment of Rs. 51,00,000/- in the property during the year under consideration, with a view to verify the aforesaid information, sent a letter dated 09.03.2017 to the assessee, but there was no reply received from the assessee, and the information as to investment of Rs. 51 lacs made by the assessee in the property remained unverified. This led to invocation by Revenue of provisions of Section 147/148 of the 1961 Act. The AO recorded reasons for reopening of the assessment, and with the prior approval of the competent authority, the case of the assessee was selected by Revenue for re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The ld. CIT(A) observed that the assessee did not made any compliances before the AO during the reassessment proceedings conducted by the AO u/s 147/148 of the 1961 Act, and hence the question of non consideration of return of income filed by the assessee does not arise. The ld. CIT(A) further observed that the AO has not given any reason for assuming the returned income of the assessee and hence ld. CIT(A) held that the additions made on pure assumption and guess work are not sustainable, and accordingly ld. CIT(A) directed AO to consider the returned income of the assessee at Rs. 1,55,235/- . The third grievance of the assessee before ld. CIT(A) was with respect to merits of the additions made by the AO. The assessee submitted before ld. CIT(A) that the Assessee purchased a plot of land from Smt. Ranjana Singh for total consideration of Rs. 21,00,000/- . The value of the said plot as adopted by stamp valuation authorities for the purpose of levying stamp duty on registration of property, was Rs. 51,00,000/-. The assessee submitted that stamp duty of Rs. 3,57,000/- was paid by the assessee on purchase of the plot of land. The assessee explained sources of purchase of plot, and cop ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,00,000/- from Shri K.P. Gupta, Rs. 4,22,000/- from Shri Pradeep Agarwal, Rs. 7,50,000/- from Shri Raj Kumar Gupta), and for the remaining amount the ld. CIT(A) upheld the additions to the tune of Rs. 8,95,000/-, vide appellate order dated 21.12.2018, granting partial relief to the assessee. 4. Still aggrieved, the assessee has filed second appeal with the tribunal. The ld. Counsel for the assessee opened arguments before the Bench, and submitted that the assessee purchased property for Rs. 21 lacs, of whose circle value was Rs. 51 lacs. It was submitted that the AO made additions to the income of the assessee, to the tune of Rs. 51 lacs, by invoking provisions of Section 69 of the 1961 Act. It was submitted by ld. Counsel for the assesse that ld. CIT(A) restored the purchase value of the property to Rs.21 lacs which is the actual consideration paid by assessee for the purchase of property, as against Rs. 51 lacs determined by the AO based on circle rate adopted by stamp valuation authorities . It was submitted that additionally, the assessee paid stamp duty of Rs. 3.67 lacs for registration of the said plot of land in favour of the assessee. The ld. Counsel for the assessee submi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... made to delete the additions, or the matter may be restored back to the file of ld. CIT(A) for denovo adjudication on merits. 4.2 The ld. Sr. DR would submit that the assessee has not filed bank statements of lenders, and further that ingredients of Section 68 were not fulfilled by the assessee as the assessee could not prove creditworthiness of the lenders as well genuineness of the transaction. The ld. Sr. DR would rely on the appellate order passed by ld. CIT(A). 5. We have considered rival contentions and perused the material on record. The brief facts of the case are that the case of the assessee was reopened by Revenue for framing reassessment u/s 147/148 of the 1961 Act, based on information received by department that the assessee has made investment of Rs. 51,00,000/- in the property during the year under consideration . The assessee did not participated in the re-assessment proceedings, despite being given several opportunities by the AO, which led AO to invoke provisions of Section 69 of the 1961 Act, and made additions to the tune of Rs. 51 lacs in the hands of the assessee, vide reassessment order dated 21.12.2017 passed by AO u/s 144/147 of the 1961 Act. The assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntion the cheque numbers/remitter name in the bank statement of the assessee. It could have been cross verified with the bank statements of the lender, which the assessee never filed, till date. As per ld. CIT(A), the assessee was also not able to prove creditworthiness of the lenders and the genuineness of these loan transactions, with respect to these two loans aggregating to Rs. 10 lacs claimed to have been raised by the assessee, from Mr. Jitender Kumar(Rs. 5 lacs) and Mr. Jehangir Alam(since deceased) (Rs. 5 lacs) respectively . Even the bank statements of the lender are not filed. The assessee has stated that department can obtain bank statement of these lenders directly from the bank, as due to passage of time the assessee is not able to obtain these bank statements. One of the purposesof Public Authorities is to assist Public in their genuine and bonafide difficulties, as Public Authorities are meant to serve public. The assessee has also produced notorized affidavit dated 18.04.2022, of son of Mr. Jehangir Alam(since deceased), wherein it is averred by son of Mr. Jehangir Alam (since deceased) that his father has given cheque of Rs. 5 lacs to his friend's brother-in-law, n ..... X X X X Extracts X X X X X X X X Extracts X X X X
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