Reassessment without tangible material and unsupported estimate-based additions were rejected in a marriage-expense and jewellery dispute.

Reassessment under section 148 was held invalid where the recorded reasons showed only an attempt to verify marriage expenses and alleged jewellery transfers without fresh tangible material or a live link to escapement of income; the notice was quashed. The estimated addition for marriage expenses was deleted because it rested on assumptions, without examination of contributors, independent enquiry, or supporting evidence. The addition for jewellery, silver utensils and diamonds was also deleted because the will was supported by witnesses and a notary, registration was not legally required, and the Revenue produced no evidence of an unexplained gift in the relevant year.

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Issues: (i) whether reassessment under section 148 was valid; (ii) whether the addition on account of estimated marriage expenses was sustainable; (iii) whether the addition on account of jewellery, silver utensils and diamonds alleged to have been given to the daughter at marriage was sustainable.

Issue (i): whether reassessment under section 148 was valid.

Analysis: The recorded reasons showed that the Assessing Officer sought to verify the marriage expenses and the jewellery transaction on the basis of a police statement and a will, without any fresh tangible material demonstrating escapement of income. Reopening for the purpose of verification alone amounts to a fishing or roving inquiry and is not permissible. A statement under section 161 of the Code of Criminal Procedure, 1973 is not substantive evidence for this purpose, and the reasons did not disclose a live link between material and belief of escapement.

Conclusion: The reassessment proceedings were invalid and the notice under section 148 was quashed in favour of the assessee.

Issue (ii): whether the addition on account of estimated marriage expenses was sustainable.

Analysis: The estimate of marriage was made without examination of the persons who were said to have contributed shagun, without independent enquiry, and without any supporting material. The authorities below made competing estimates on assumptions rather than evidence. In the absence of a factual basis for enhancement of the expenditure, the addition could not be sustained.

Conclusion: The addition on account of marriage expenses was deleted in favour of the assessee.

Issue (iii): whether the addition on account of jewellery, silver utensils and diamonds alleged to have been given to the daughter at marriage was sustainable.

Analysis: The will executed by the assessee's mother was supported by witnesses and a notary, and there is no legal requirement that a will must be registered. The material showed that ownership of the jewellery and utensils had devolved on the daughter on the testator's death, prior to the assessment year in question. No evidence was brought by the Revenue to establish that the assessee had gifted unexplained jewellery in the relevant year.

Conclusion: The addition on account of jewellery and allied articles was deleted in favour of the assessee.

Final Conclusion: The reassessment was held to be bad in law and both impugned additions were deleted, resulting in complete relief to the assessee and dismissal of the Revenue's appeal.

Ratio Decidendi: Reassessment cannot be sustained on a mere request to verify facts in the absence of tangible material showing escapement of income, and additions based only on unsupported estimates or unproved assumptions cannot stand.

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