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TMI Blog2016 (3) TMI 1460X X X X Extracts X X X X X X X X Extracts X X X X ..... ion of Rs 107 lakhs u/s 68 of the act being cash deposited in the bank account of the assessee which could not be explained before lower authorities and third ground is against the addition u/s 69 of the act of Rs 25000/- being amount deposited with HDFC standard life Insurance co Limited. Ground No 1 and 2 are similar in appeal of the assessee for subsequent years, therefore for the sake of brevity facts are discussed in this appeal. 3. Assessee did not press ground no 3 of the appeal and therefore same is dismissed. 4. Regarding ground no 1 and 2, brief facts of the case are that the assessee is an individual. He filed his return of income for Assessment Year 2005-06 declared an income of Rs. 273220/- on 12th May 2005. Based on the info ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 48 of the Act who rejected the contention of the assessee. Regarding the addition of Rs. 1,07,64,950/- u/s 68 of the act the assessee submitted the details before the learned Commissioner of Income-tax (Appeals). The additional evidence u/s 46A of the Act was also furnished. Against this the ld AO was asked to file the remand report which was obtained. After that the learned Commissioner of Income-tax (Appeals) upheld the addition of Rs. 1,07,64,950/-. The learned Commissioner of Income-tax (Appeals) rejected the contention of the assessee that this sum was deposited in the bank account of the assessee which was received from his brother in law Shri Dinesh Prasad, who used to collect sum from different persons for making investment in equit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed that the bank account of assessee has huge cash deposit and therefore section 148 has been invoked. He submitted that there are no transactions with the person in whose assessment inquiry is made by AO of the bank account of the assessee. He submitted that on receipt of the information of bank account the ld AO issued notice u/s 148 of the Act by holding that the assessee has unaccounted income without making any inquiry. He further submitted that the assessment of Shri mann and the assessee has no linkage and there is no adverse inference in the assessment of Shri Mann as nothing comes out of the order of assessee or reasons recorded. Therefore It was submitted that merely on receipt of information by the AO without application of mind ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see and the prime responsibility is of the assessee to explain the source of the deposit of such sum in his bank account. The assessee has explained that he is only acting on behalf of his brother in law who used to collect money from various persons and in turn this money was handed over to the assessee who in turn used to deposit this sum in his bank account and from his bank account the amount is given to various companies. The reopening u/s 148 of the Act has been initiated on the basis of information received from another AO. The information contained the specific account number, the amount deposited in those bank accounts. Further looking to the assessment records of the assessee who is merely an accountant earning meager salary. Henc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g of assessment is validly initiated. Therefore ground no 1 of the appeal is dismissed. 9. Regarding the second argument of the assessee that as the AO has himself stated in Para No.14 of the remand report dated 25.05.2012 that assessee is a person of no means who could not have deposited such a huge sum. It is an admitted facts that the amount of investments in various companies have been made through this bank account of the assessee and money is deposited in various concerns. Therefore it is also required to be established that who owns those investments and who are the real beneficiaries of such investments, it can be either the investor or investee. Therefore in these circumstances, thorough examination of the transaction needs to be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e subsequent years are also same with respect to reopening of assessment and amount deposited in the above said bank account of the assessee from where investments have been made. 12. We dismiss ground no 1 of both the appeal for AY 2006-07 and 2007-08 against the reopening of assessment based on the reason given by is appeal of assessee for AY 2005-06 while disposing ground no 1 of that appeal. 13. Regarding amount of cash deposited in the bank account of the assessee which is contested by ground o 2 of these appeal for Ay 2006-07 and 2007-08, we have already discussed the facts and given our finding while deciding ground no 2 of the appeal of the assessee for Ay 2005-06. Therefore we also set aside ground no 2 of the appeal of both the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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