TaxTMI 
TaxTMI 
2018 (2) TMI 763
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....dentAssessing Officer seeking to reopen the petitioner's assessment for the assessment year 2010-11. 3. Brief facts are as under. 4. The petitioner is an individual and is engaged as a professional architect. For the assessment year 2010-11, the petitioner had filed the return of income on 18.09.2010 which was later on revised on 31.10.2010. The return was accepted under section 143(1) of the Act. The petitioner was subjected to survey operation under section 133A of the Act. On 01.12.2011, consequent to the search, the Assessing Officer issued notice under section 148 of the Act on 09.11.2012 to reopen the assessment for the assessment year 2010-11. In response to the notice, the petitioner filed the return declaring total income....
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....owing reasons: "A Survey action u/s 133 of the I.T. Act was conducted on (01.12.2011) in the case of assessee at his office B601604, President Plaza, Near RTO, Surat. The assessee is providing consulting services as Civil Structural Designer to the builders for their residential/commercial projects in Surat, Vapi, Valsad, Navsari and to the private parties for their residential /office premises. 2. During the course of survey, incriminating documents related to unaccounted professional receipts of the assessee in cash was found and impounded. Statement u/s 131 of the assessee was recorded during the course of survey. The assessee was questioned about loose paper file (AnnexureBI1) and dairy (AnnexureBI4) in Q.No.32 & 33. T....
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.... of one zero being not used while writing the figures. A document i.e. page no.19 of the loose paper filed found and impounded as per AnnexureBI1, which is a letter written by the assessee to Shri Vimalbhai on 03.11.2010, and was confronted to the assessee vide Q. No.25, 26 and 27 of the statement dated 01.12.2011. He accepted receiving unrecorded cash payments and the content of the letter are very clear in Q. No.27 and his reply to it. The same are being reproduced for ready reference. "Q. No. 27: In answer to Q. No.25, you have stated that you have so far received an amount of Rs. 10,41,000/from Shri Vimal Poddar. Now I am showing you page no. 18 oif loose paper file - Annexure A wherein it has been written as under: Sr. No. ....
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....iary as per Annexure BI4, it becomes very clear and is a clinching proof that one decimal place has been removed while writing the figures in the diary. The payment of Rs. 2,21,000/which was pending on 03.11.2010 and the appellant has accepted had already been received on the date of search has been noted received in the diary in 23.10.2011 in the diary at page no.117 as 22100. The narration is Vimal Poddar with respect to 3 projects. Clearly, one zero has been removed, while writing the figures. 4. The payment of Rs. 4,10,000/as mentioned in the letter, which was received in cash as mentioned in letter, has also been noted in the diary by removing one digit (decimal place) on different dates. Details of payment of Rs. 4,10,000/rec....
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....y. Therefore, I am satisfied that this is a fit case for invoking the provisions of section 147 of the Act. Accordingly, approval for issue of notice u/s. 148 of the Act may kindly be accorded." 7. The gist of the reasons elaborately recorded by the Assessing Officer is that according to him, there is material on record to suggest that the figures mentioned in the personal diary maintained by the assessee represented the cash transactions reduced by one zero. In other words, reference to the outstanding payment of Rs. 4,10,000/in the diary was made by noting a figure of Rs. 41,000/. This picture, the Assessing Officer desired to project against the assessee's unaccounted receipt of Rs. 5,96,914/made in the diary. 8. We may recall,....