TaxTMI 
TaxTMI 
2012 (3) TMI 471
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....ment reopened u/s 147 by treating the reasons recorded by the AO without any basis and had in law though the same ground has been contended by the daughter of assessee in the courts upto the level of High Court. 2. That the ld. CIT(A) has erred in deleting the addition of Rs. 4 lakhs on account of FDR in the name of Sanchita Chauhan, daughter of the assessee by accepting the plea of the assessee that these are sufficient funds available in the bank of Sanchita Chauhan and ignoring the facts that these was not corresponding withdrawal from the bank a/c from where said FDR can be made. 3. That the ld. CIT(A) has erred in deleting the addition of Rs. 1 lakh on account of expenses of ring ceremony on the facts which was considered by the ....
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....n record photographs showing the Roka ceremony in the year 1991 as an evidence of such function having been held in the year 1991. As per the information given, Sanchita Chauhan continued with her education and completed her ME Chemical Engineering in 1994 from P.U Chandigarh and completed her PHD from IIT, New Delhi in 2003. Her marriage was performed on 2.10.2000 but due to persistent dowry demand the marriage did not work and finally a divorce was granted by Tees Hazari Court on Ist July, 2008. As per the assessee a legal suit was filed to recover the items given in dowry which was finally settled by the Hon'ble Punjab & Haryana High Court 4. Information was received through the Addl CIT, Panchkula vide letter dated 19.3.2008 that....
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....he assessment after making the following additions: i) Addition on account of FD alleged to be in complainant's name Rs. 4,00,000 ii) Addition on account of Ring ceremony at Essex Farms Rs. 1,00,000 iii) Addition on account of Gold jewellery given in marriage Rs. 3,60,000/- iv) Addition on account of cloths given to bride and bridegroom Rs. 1,20,000 v) Addition on account of Diwali and Karwa Chauth gifts Rs. 25,000 5. Before the CIT(A), the assessee challenged the reopening of assessment proceedings u/s 147 of the Act and also the additions made on various grounds. The CIT(A) observed that re-assessment proceedings in the case were initiated because of the tax evasion petition receiv....
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....t verifying the factum of filing of the return of income by both the assessee and his wife, the initiation of the re-assessment proceedings was held to be without any basis and bad in law. The CIT(A) also placed reliance on the ratio laid down by Chandigarh Bench of the Tribunal in Shri Rajnish Bansal ITA No. 55-57/Chd/2009dated 29.1.2010. 7. Smt. Jaishree Sharma, D.R appeared for the revenue and Shri Rakesh Gupta appeared for the assessee and put forwarded their contentions. 8. We have heard the rival contentions and perused the record. The issue raised vide ground No. 1 is on account of reopening of assessment u/s 147 of the Act. The reason recorded for reopening the assessment is as under: "In this regard, it is intimate you tha....
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....order of the CIT(A) that in the absence of any rational connection or relevant bearing to the formation of belief of escapement of income for the period relevant to Assessment Year 2001-02, we find that the re-assessment proceedings initiated in the case are without any basis and bad in law. Consequently the re-assessment proceedings initiated u/s 147 of the Act and consequent assessment completed u/s 143(3) r.w. section 147 of the Act, are quashed. 10. Ground Nos.2 to 5 raised by the revenue are against the deletion made by the CIT(A) of various additions made by the AO. 11. The assessee explained the details of funds utilized for said expenditure which was not accepted by the AO and hence the addition. The CIT(A), on the other hand,....
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....xpired. The AO accepted the expenditure of Rs. 50,000/- and balance addition of Rs. 1.00 lakh was made. The CIT(A) in view of the financial status of the mother-in-law of the assessee held that there was financial capacity and in view of relation between them, no addition is warranted on this account. In the absence of any evidence being brought on record to the contrary, we are in conformity with the order of the CIT(A) and consequently uphold the deletion of addition of Rs. 1.00 lakh. 11.3 Addition of Rs. 3,60,000/- on account of unexplained jewellery. The explanation of the assessee in respect of source of investment in the said jewellery was gifts received from parents and relations and gold items purchased in 1991 i.e. when the marr....