TMI Blog2016 (5) TMI 1588X X X X Extracts X X X X X X X X Extracts X X X X ..... r engagement and marriage ceremony. It is brought to our notice that no addition has been made in the hands of Ms.Sarika Jain. On the contrary, Smt.Sarika Jain alleged in her complaint made with the Police that the assessee had spent an amount of Rs.7 lacs at the time of Roka and Engagement functions. It is also observed that in this case the information was provided by DDIT (Investigation)-III, Ludhiana on the basis of Police Report, wherein the daughter of the assessee alleged that a huge amount has been spent on marriage and Roka ceremony. The complaint was made by Ms.Sarika Jain against her husband and in-laws. Shri S.K. Maingi, learned counsel for the assessee submitted that the said complaint was made by Ms.Sarika Jain in order to fetch money from her husband and in-laws. This contention of the learned counsel for the assessee has some force, which can not be ignored. Division Bench of this Tribunal in the case of Shri Subhash Chander Goel [ 2016 (2) TMI 78 - ITAT CHANDIGARH ] relating to assessment year 2006-07 held that statement recorded by the police officer under section 161 of CrPc, 1983 is neither given on oath, nor it is tested by cross examination and, therefor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to add or amend the grounds of appeal before the appeal is finally heard or disposed off. 3. The legal issue raised by the assessee in this appeal relates to validity of reopening of the assessment under section 147 of the Income Tax Act, 1961 (in short the Act ). For assessment year 2005-06, the assessee (individual) submitted his return of income on 25.7.2005 declaring total income at Rs,1,79,563/-. The return was processed under section 143(1) of the Act. Subsequently, the Assessing Officer issued notice under section 148 of the Act, dated 31.3.2010 after recording reasons that the assessee had incurred expenditure on Roka and Engagement functions of her daughter solemnized on 29.8.2004, out of his unexplained income and income has escaped assessment for the period relevant to the assessment year 2005-06. Thereafter, the Assessing Officer issued statutory notices under sections 142(1) and 143(2) of the Act. On 15.11.2010, the assessee requested the Assessing Officer to supply the reasons recorded for reopening of the assessment. The Assessing Officer vide his letter dated 13.12.2010 asked the assessee as to why the expenses incurred amounting to Rs.7 lacs on Roka and Engage ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gagement function was solemnized on 29.08.2004 and expenditure of Rs 7 lacs was made on these function further, approximately Rs 30 lacs was spent on the marriage ceremony held on 16.05.2005. Investigation of DDIT (Inv.) shows the expenditure was made out of unexplained income which assessee could not explain before the investigation Wing. 2. I am satisfied that the assessee had incurred expenses of Rs 7 lacs on Roka and engagement ceremony function solemnized on 29.08.2004 out of his un-explained income and income has escaped assessment for the period relevant to the Asstt. Year 2005-06. Issue notice under section 148 of the Income Tax Act, 1961 for the Asstt. Year 2005-06. Yours faithfully Sd/- ( O.P.Saroha ) Dated: 31.03.2010 Income Tax Officer-111(2) Ludhiana 8. The Assessing Officer issued notice under section 148 of the Act after recording the above reasons for reopening of assessment. The brief background of the case is that the daughter of the assessee Ms.Sarika Jain married to Shri Piyush Jain on 16.5.2005. Later on, due to strained relations between Ms.Sarika Jain and Shri Piyush Jain, the daughter of the assessee lodged FIR No.69 dated 11.5.20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r of Ms.Sarika Jain. According to the learned counsel for the assessee, the proceedings under section 147 r.w.s. 148 of the Act in the hands of the father i.e. Shri Ashok Goel on the basis of the allegations made by Ms.Sarika Jain against here husband, cannot be made the basis for making the addition. In the instant case, the ground on which the re-assessment notice was issued is not in existence. In the reasons recorded by the Assessing Officer, reproduced here-inabove, the Assessing Officer has categorically stated that as per the copy of complaint made by the assessee to SSP of Police, Ludhiana, Roka and Engagement functions were solemnized on 29.8.2004 and expenditure of Rs.7 lacs was made on these functions. Further, approximately Rs.30 lacs were spent on the marriage ceremony held on 16.5.2005. Section 148(2) of the Act provides that before issuing any notice under section 148, the Assessing Officer has to record his reasons for reopening of the assessment. The reasons to be recorded by the Assessing Officer must relate to his belief under section 147 of the Act that any income chargeable to tax has escaped assessment for any assessment year. It is well settled legal position ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the Assessing Officer should have formed a prima facie belief that income has escaped assessment. 24. 'Reasons to believe' recorded by the Assessing Officer are a result of the subjective satisfaction of the assessing officer, but in a way has to satisfy the test of objectiveness. The belief must be honest and should be based upon some material or basis but not on mere suspicion, gossip or rumour. 'Reasons to believe' do not mean 'reasons to suspect'. The Assessing Officer cannot institute or start a fishing investigation or rowing inquiry. There must be some information or material which is on the file which makes the assessing officer form a tentative or prima facie opinion that income has escaped assessment. This material or information cannot be wholly vague, indefinite or farfetched. It must have nexus or live link with the formation of belief. The test is whether a reasonable person would have formed the requisite belief on the basis of information or material as stated/recorded by the Assessing Officer that income has possibly escaped assessment. Mere ipse dixit or a hunch does not amount to reason to believe. Inspite of the wide power, the ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... omplaint to the SSP, Ludhiana. Secondly, the Assessing Officer has mentioned in the reasons recorded that information was received from DDIT (Investigation)-III, Ludhiana that the assessee and his daughter Ms.Sarika Jain had spent approximately Rs.37 lacs on her engagement and marriage ceremony. It is brought to our notice that no addition has been made in the hands of Ms.Sarika Jain. On the contrary, Smt.Sarika Jain alleged in her complaint made with the Police that the assessee had spent an amount of Rs.7 lacs at the time of Roka and Engagement functions. It is also observed that in this case the information was provided by DDIT (Investigation)-III, Ludhiana on the basis of Police Report, wherein the daughter of the assessee alleged that a huge amount has been spent on marriage and Roka ceremony. The complaint was made by Ms.Sarika Jain against her husband and in-laws. Shri S.K. Maingi, learned counsel for the assessee submitted that the said complaint was made by Ms.Sarika Jain in order to fetch money from her husband and in-laws. This contention of the learned counsel for the assessee has some force, which can not be ignored. Recently, Division Bench of this Tribunal in the cas ..... X X X X Extracts X X X X X X X X Extracts X X X X
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