Tribunal partially allows appeal, directs re-examination of unexplained income & capital gains.

The Tribunal partly allowed the appeal for statistical purposes, directing the Assessing Officer to re-examine the addition of Rs. 5,75,000 as unexplained income and Rs. 7,80,851 as Long Term Capital Gains. The Tribunal emphasized the importance of a comprehensive review of evidence and facts presented by the assessee.

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Issues Involved:
1. Reopening of assessment under Section 147/143(3) of the I.T. Act, 1961.
2. Addition of Rs. 5,75,000 as unexplained income.
3. Addition of Rs. 7,80,851 as Long Term Capital Gains (LTCG).

Detailed Analysis:

1. Reopening of Assessment under Section 147/143(3):
The assessee challenged the reopening of the assessment on the grounds that statutory conditions under Sections 147 to 151 were not complied with and that the notice under Section 143(2) was not issued/served correctly. However, during the hearing, the assessee's counsel did not press these grounds, leading to their dismissal as not pressed.

2. Addition of Rs. 5,75,000 as Unexplained Income:
The A.O. added Rs. 5,75,000 as unexplained income, which the assessee claimed was given by his son from the sale of buffaloes, cow, and popular trees. The Ld. CIT(A) upheld this addition, noting that the assessee failed to provide credible evidence such as khasra, khatauni, or proof of sale of cattle. The Tribunal found merit in the assessee's argument that the A.O. did not examine the son and allowed the assessee to produce his son for examination. The issue was restored to the A.O. for fresh adjudication, with directions to give the assessee an opportunity to substantiate the cash deposit with cogent evidence.

3. Addition of Rs. 7,80,851 as Long Term Capital Gains (LTCG):
The A.O. added Rs. 7,80,851 as LTCG from the sale of land, which the assessee claimed belonged to his wife. The Ld. CIT(A) upheld this addition, stating that the assessee had initially treated the property as his own for capital gain computation. The Tribunal found force in the assessee's argument that the property was in his wife's name and restored the issue to the A.O. for fresh adjudication. The A.O. was directed to decide the issue as per fact and law, after giving due opportunity to the assessee.

Conclusion:
The appeal was partly allowed for statistical purposes. The Tribunal directed the A.O. to re-examine the addition of Rs. 5,75,000 as unexplained income and the addition of Rs. 7,80,851 as LTCG, giving the assessee an opportunity to present evidence and arguments. The judgment emphasized the need for a thorough and fair examination of the facts and evidence presented by the assessee.

Order Pronouncement:
The order was pronounced in the open Court on 29.10.2021.

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