TaxTMI 
TaxTMI 
2016 (6) TMI 591
X X X X Extracts X X X X
X X X X Extracts X X X X
....acts of the case are that during the accounting year relevant to the Asstt.Year 2012-13, the assessee had made investment in insurance policies worth Rs. 15 lakhs. He has not filed any return of income. The Annual Information Wing transmitted information with regard to the investment in the insurance policies. On the strength of this information, the ld.AO has recorded reason that income chargeable to tax has escaped the assessment. Accordingly, he issued notice upon the assessee under section 148 of the Income Tax Act on 18.3.2014 which was duly served upon the assessee. The ld.counsel for the assessee has submitted that the AO had not possessed any material which can help him to form an opinion that income has escaped assessment. He was h....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ake note of relevant questions and their answers. They read as under: " Q.2 Please give the details of your family. Ans: I am living along with my mother, wife and my aunty (father's sister) at Bajat Falia, At & Post. Vankal, Tal. Mangrol, Surat. Q.3 Please give the details of household withdrawals and what was your monthly household withdrawals. Ans: The household expenses are being met by from our withdrawal from bank and from sale of nursery saplings. The monthly household expenses will be around Rs. 12,000/- to Rs. 15,000/- Q.4 Please give the source of income of your and your family member Ans: I am receiving agricultural income and running a nursery in the name 'Hanuman Farm' which....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... Q.9 Whether you have investment in insurance policies, if yes, source of investment in insurance policies ? Ans. Yes. I have taken two single premium insurance policies from SBI life Insurance Co. Ltd., policy numbers 55002975105 and 53001287208 of Rs. 9 lakhs and Rs. 6 lakhs respectively. The source of investment made by my father (expired in 2011) and aunty, Shantaben who is holding agricultural land of 58506 sq.meters at Vankal. I have also taken a policy from IndiaFirst Life Insurance Co. and the payment of Rs. 1,00,000/- was paid on 14.09.2011 from my savings bank of Bank of Baroda." 6. The stand of the assessee is that his 89 years old widow aunt, namely, (father's sister), Smt. Shantaben Desai was residing with him. She ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....contended that the assessee has submitted old bills exhibiting sale of sugar cane. This related to F.Y.2006-07 to 2010-11. These bills would indicate that the average income of the assessee would range in-between Rs. 4 lakhs to Rs. 4.50 lakhs only. Therefore, the assessee must have some other source of income for making the alleged unexplained investment in LIC. 9. We have considered rival contentions and gone through the record carefully. In our opinion, the ld.Revenue authorities have failed to appreciate the controversy in right perspective. The assessee is a farmer, who is running a nursery also. He has alleged that his old father who died in 2011 at the age of 82 was living with him. Similarly, his father's sister i.e. his aunt havi....