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TMI Blog2025 (5) TMI 1407X X X X Extracts X X X X X X X X Extracts X X X X ..... hout having documentary evidences for allegations and reasons for reopening. (3) On the facts and circumstances of the case and in law the CIT(A) erred confirming the addition of Rs 23,65,000 as unexplained income under section 69A of the Act. 2. Rival submissions of both the parties have been heard and perused the record. At the time of hearing, the learned authorised representative (ld AR) of the assessee submits that he has prepared summery of his submissions, and he may be allowed to placed such submissions or record. The Ground No. 1 & 2 relates to validity of reopening and passing of assessment order under section 147 read with section 144B. The Ld. AR of the assessee submitted that case of the assessee was reopened on the basis of information from the 'insight portal' which was based on tax evasion petition that assessee is engaged in financial transactions leading to the accumulation of black money and money laundering. The Assessing Officer (AO)after recording reasons of reopening under section 147, issued notice under section 148 of the Act. The assessee filed her return of income in response to notice under section 148. As per the contents of notice under section 148 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nder section 69A of the Act. Aggrieved by the assessment order, assessee filed the appeal before the Ld. CIT(A) and again the assessee submitted the details and explained about the source of cash deposit and also filed copy of gift deed about the gift from her son and nephew and sale bill/ receipt of gold jewellery. The ld CIT(A) after considering the submission of assessee, confirmed the action of AO by taking view that there is no witness on the gift deed. In her personal law even oral gift is valid. The assessee has shown taxable income of more than Rs. 23 lakhs filed in the return of income. The assessee submitted that for the purpose of business and to meet the requirement had sold gold Jewellery which was deposited in bank. The assessee deposited cash of Rs. 15.00 lakhs on 31.05.2015 Rs. 5,70,000/- on 23.08.2016 Rs. 95,000/- on 30.09.2016 and Rs. 2 lakhs on 17.03.2017/-. The Ld. AR while explaining the source of such deposit submitted that assessee was having Rs. 7.00 lakhs cash from her saving which is reflected in the balance sheet and the copy of which is placed at page no.4 of the paper book. He further submitted that copy of gift deed from her son Mr. Shayan Hasan Chariy ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 05/2022, dated 04.05.2022). 5. On merit of the addition made on account of unexplained income under section 69A of the Act, the Ld. Sr. DR for the revenue submits that during the assessment as well as before Ld. CIT(A), the assessee has failed to substantiate the source of cash deposit. The assessee has shown gift from relatives but failed to prove the same. Further, the assessee failed to show evidence about the cash in hand. The ld Sr DR for the revenue prayed for dismissal of appeal. 6. We have considered the rival submissions of both the parties and perused the orders of lower authorities carefully. We have also deliberated on written submissions of ld AR of the assessee and on various case laws relied by him. Ground no. 1 & 2 relates to the validity of reopening under section 147 of the Act. We find that the case of assessee was reopened on the basis of Tax Evasion Petition (TEP) filed by some Munir Ahmad Ansari. On the basis of such tax evasion petition, the AO recorded the reasons. The AO has recorded such reasons on page no. 2 of the assessment order and for appreciation of the facts and reasons recorded are extracted below:- "...... 4) On verification of the informatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a 100% owner of the above property, 8% of the total cost of Rs. 1,45,00,000- is worked out as annual rent from the above property, which comes to Rs. 11,60,000/-. 8) The total escapement of income in the hands of the assessee works out as under: Rs. 7,00,00,000/- - As discussed in paras no. 6 above Rs. 11,60,000/-- As discussed in para no. 7 above Rs. 7,11,60,000/-- Total Escapement of Income in the hands of assessee." 7. On careful perusal of the reasons recorded, we find that the AO reopened the case of assessee that income of the assessee has escaped from assessee on account of receiving /retaining amount of Haj Pilgrims and income chargeable to tax of Rs. 7.00 crores, secondly, the assessee has purchased flat No 403 in Al-Makkah Building in the name of their daughter and thirdly income from such flat aggregate to Rs. 11,60,000/-. Thus, as per reasons recorded, there is total escapement of income of Rs. 7.11 crores. 8. We find that the AO on filing return of income and receipt of reply from assessee, dropped on both the items of escapement of income, which were made basis of escapement of income and reopening, thereby no addition was made by AO. However, the AO picked ..... X X X X Extracts X X X X X X X X Extracts X X X X
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