2013 (10) TMI 711

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....and on facts in confirming the action of Ld. AO in passing the assessment order u/s. 147/143(3) that too without serving the mandatory notice u/s. 148 as per law, without obtaining valid approval as prescribed under the law, without recording valid reasons to believe that income has escaped assessment and without complying with the mandatory conditions as prescribed u/s. 147 to 151 with regard to the reopening of the case u/s. 147 and framing of the assessment u/s. 147/143 thereto. ii) That having regard to the facts and circumstances of the case, Ld. CIT(A) has erred in law and on facts in confirming the action of Ld. AO in making an addition of Rs. 2,00,000/- as income from unexplained source u/s. 68 of the I.T. Act, 1961 on account of....

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....kshmi Co-operative Bank Ltd., Fateh Puri, Delhi. During the course of assessment proceedings the assessee furnished copy of affidavit, declaration of gift, IT acknowledgment for A.Y. 2002-03 and PAN Number of Shri Vipin Kumar. The AO issued summon u/s 131 of the Act dated 16.11.2007 for cross verification. Shri Vipin Kumar did not turn up. Assessing Officer received a letter from the appellant on 11.12.2007 furnishing therein the Gift Deed on 13.03.2007. Assessing Officer made the addition taking into consideration the following observations: a) The assessee has furnished the assessment particulars of the Donor for the A.Y. 2002-03, which are not related to year under consideration. b) Gift deed filed do not indicate any relationship ....

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....the donor has been submitted; copy of IT & WT returns and computation of income and wealth of the donor was also submitted to prove that he was an income tax assessee. Assessee has also submitted copy of bank statement of the donor and photo copy of the gift deed. Thus, we find that all the necessary particulars to establish the identity, creditworthiness and genuineness of the donor has been submitted by the assessee. Thus, the assessee has discharged the initial onus. The AO has not been able to establish that the gift was a bogus accommodation entry. 6.2 In this regard, we refer the decision of the Hon'ble Apex Court in the case of C.I.T. vs. Orissa Corporation Pvt. Ltd. 159 ITR 78 wherein it has held that "In this case, the responden....