TaxTMI 
TaxTMI 
2015 (2) TMI 447
X X X X Extracts X X X X
X X X X Extracts X X X X
....ing the addition on Rs. 28,00,000/- as rightly made by the AO on account of unexplained investment u/s 69 of the I.T.Act made by the assessee. (ii) Deleting the addition of Rs. 2,33,433/- made by the AO on account of unexplained expenditure through Credit Card u/s 69C of the I.T.Act, 1961 made by the assessee. The appellant craves the right to alter, amend, add or substitute the grounds of appeal." 2. The assessee has filed cross objection in the present proceedings on the following grounds:- 1. "That having regard to the facts and circumstances of the case, Ld. CIT(A) ought to have quashed the assessment order inter alia on the ground that notice u/s 143(2) was not served upon the assessee, more so when Ld. AO himself has accep....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ard the rival submissions and perused the material available on record. It is seen from the record that the assessment order is passed u/s 144 by the AO who has varied the return of income of the assessee from Rs. 16,47,190/- which was returned to Rs. 4680623/- as a result of additions made based on AIR information. The specific reasons given by him for making these additions are set out in paras 2 to 5 of the assessment order. These are reproduced hereunder for ready-reference:- "2. Thereafter, the case was again fixed vide notices u/s 142(1) dated 09.09.2008, 12.05.2009, 07.08.2009, 30.10.2009 and final show cause notice on 26.11.2009 fixing the hearing for 15.09.2008, 25.05.2009, 17.08.2009, 09.11.2009 and 07.12.2009 respectively at a....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ed within the meaning of section 69 of the I.T. Act which is reproduced hereunder: "Where in the financial year immediately preceding the assessment year the assessee has made investments which are not recorded in the books of account, if any, maintained by him for any source of income, and the assessee offers no explanation about the nature and source of the investments or the explanation offered by him is not, in the opinion of the Assessing Officer, satisfactory, the value of the investment may be deemed to be the income of the assessee of such financial year." 5. In view of above, I held the entry of credit card payment of Rs. 2,33,433/- and investment in mutual funds of Rs. 28 lakh totaling to Rs. 30,33,433/- as unexplained and a....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ed in this specific bank account from which the assessee has made payment of credit card of Rs. 2,33,613/-. In support of the said explanation copy of the bank statement of HSBC, details of the credit card, ITR copy and Form 16 were placed before the CIT(A). 6.3. Referring to the second addition of Rs. 28 lakh also based on the same bank account it was submitted that the assessee through SIP has invested on different dates a total amount of Rs. 70,000/- , Rs. 35,000/- & Rs. 1 lakh in HDFC Long Term Advantage Fund, Franklin India Flexi Cap Fund, HSBC Midcap Equity Fund and HSBC Floating Rate Fund respectively. Apart from this the assessee had also made investment by SIP through its Citi Bank A/c No. 5-53355-1116 amounting to Rs. 6,000/-, ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....nt year. Therefore we request your Hon'ble, in the absence of any service of notice u/s 143(2), the ex-parte assessment is invalid, illegal and void ab initio. Therefore the addition made by the assessing officer may be kindly deleted." 4. The appellant filed his written submissions dated 27.11.2012 which is reproduced for ready-reference:- "Kindly refer to above, we are enclosing the copy of AIR information in the case of Ms Pallavi Srivastava for your kind perusal. As per AIR information the following transactions are made:- 6.5. Considering the above the CIT(A) came to the following conclusions: 1. "I have perused the assessment order, written submission, grounds of appeals of appellant and discussed the matter with AR carefu....
X X X X Extracts X X X X
X X X X Extracts X X X X
....us. The relevant documents relied upon by the CIT(A) support the case of the assessee wherein the assessment order is u/s 144 and the Remand Report in regard to relevant evidences has been obtained and considered. In the aforementioned peculiar facts and circumstances the departmental ground is dismissed. 7. In view of the above fact that the department's appeal is dismissed and the Cross Objection filed by the assessee is dismissed as academic. 8. In the result, the appeal of the Revenue and the C.O. of the assessee are dismissed. The order is pronounced in the open court on 29th of August 2014. ============= Document 1 S.No. Date Particulars 1. 31 March Credit Card 07 |Amount(Rs.) Our reply/submission 2,33,....