TaxTMI 
TaxTMI 
TaxTMI 
2018 (1) TMI 1446
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.... the addition of Rs. 5,01,250/- without prejudice to the aforesaid grounds, and in any view the amount credited of Rs. 5 Lacs in the Union Bank Account stands fully explained of the gift received duly confirmed by donor, and material on record. 2.3- BECAUSE in any view, the CIT(A) has grossly erred in confirming the addition of Rs. 5,01,250/- in view of the fact that the amount of Rs. 5 lacs credited in the Bank Accounts is strengthened and explained from the confirmation to the A.O., from "Jai Lakshmi Co- Operative Bank Ltd." and relied by the A.O. 2.4- BECAUSE in any view, the CIT(A) has grossly erred in confirming the addition of Rs. 5,01,250/- even after the gap of more then 7 and 1/2 years in the facts and evidence on record, the credit in Bank Account remains fully explained. 2.5 BECAUSE in any view, the CIT(A) has grossly erred in confirming the addition of Rs. 5,01,250/- without admitting the fact that as per the certificate given to A.O. by Jai Lakshmi Cooperative Bank Ltd. the draft no. is 541638 date 13.06.2003 of Rs. 5 Lacs, which is drawn through State Bank of Indore the same as per copy of affidavit of Shri Mitlesh Gupta donor, was mentioned in the affidavit ....
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....sessment in the assessee's case was completed by the AO by making addition of Rs. 5,01,250/- to the assessee's income. On total income of Rs. 761200/- as against returned income of Rs. 2,59,946/-. 3. The ld. CIT(A) confirmed the addition. 4. The ld. Counsel for the assessee has submitted, as also as per the Synopsis filed, that the allegation as per the "Reasons to believe" is regarding bogus purchase/sale of shares, while the impugned addition has been made with respect to gift, which shows that the A.O. had no specific information and hence, the reasons recorded are vague and farfetched; that the A.O., vide letter dt. 01.12.2009 (Paper Book Pg.16), alleged that the appellant has entered into the transaction of sale/purchase of shares for Rs. 5,01,250/- even before initiating re-assessment proceedings; that the appellant, in reply to the above letter dt. 01.12.2009, vide letter dt.10.12.2009 (Paper Book Pg.17), categorically submitted that the appellant has not entered into any transaction of purchase/sale of shares, that no new adverse information has been brought on record which could suggest to initiate proceedings u/s 147/148, in spite of specific request of the app....
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....ormation. Hon'ble Supreme Court in the case of Purshottam Das Bongue and ors 224 IRE 362 (SC), has given categorical ruling that the AO on receipt of information from the Investigation wing of the department without further enquiry can form an opinion regarding escapement of income u/s 147 of the I.T. Act, 1961. Similar views have been held by the Bombay High Court in the case of Adore Technopact Ltd, Vs. Dr. Zaki Hussain DCIT, 271 ITR 50 and Hon'ble Jurisdiction High Court in the case of Brij Mohan Agarwal Vs. AC1T, 268 ITR 400. Further it has been held by the Hon'ble Supreme Court in the case of Raymond Woolen Mills Ltd. Vs. /TO 236 1TR (SC) that sufficiency of material cannot be considered while initiating reassessment proceedings, the final outcome of the proceedings is not relevant, In the case of ACTT Vs. Rajesh Jhaveri Stock Broker Pvt. Ltd. 291 1TR 3 (SC), It has been held that the formation of belief is a subjective satisfaction of the A.O. In your case this office received definite information from the Investigation Wing, which was specific in nature and in character. The Investigation Wing after making necessary inquiries passed on the information to this ....
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....No. 99/Agra/2013 dt. 05.09.2013because of the failure of the departmental representative to produce the report of the Investigation wing on the basis of which reopening of the case of the above mentioned assessee was claimed to have been done, the Hobble ITAT, Agra has held that in absence of any report of the investigation wing, the reference of report of the Investigation wing given in the reasons recorded can be held only in the nature of vague and general information and on the basis such vague and general informat ion, the reopening of the assessment proceedings u/s 147 cannot be held to be valid and therefore, the assessment order passed in the case of Sh. Ramesh Prasad, HUF vs. Income Tax Officer Ward 1(3) (Supra) has been quashed. The relevant portion of this decision is reproduced as under: 10. Considering the facts of the case in the light of above decision, it is clear that there were no specific reliable information received from Investigation Wing about escapement of Income on account of long term capital gain. The AO without examining any report or information, acted upon the said vague and general information which is bad in law. There was no reference to any docu....
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....e assessment order u/s 143(3) read with section 147 dated 21.10.2005 and accordingly, ground number 3 challenging the legal validity of the assessment order has been allowed." Further in the similar type of reasons for reopening, the Assessment Order has been quashed u/s 143/147 of the Income Tax Act. Reliance Placed: (i) ITA No.120/Agr./07-08 CIT(A)-11 Dr. R.P. Mangal -Vs- Income Tax Officer. (Pg. 10/1 to 10/2) Followed : ITA No.63/Agr/2009 (A.Y.2002-03) 1TAT Agra Bench, Agra Rajeev Mangal & Sons (HUF) -Vs- I.T.O. (Pg. 11/1 to 11/4). (ii) 299 1TR 179 (P&H High Court) CIT vs. Anupam Kapoor. (Pg. 12/1 to 12/3). (iii) ITA No. 396/ Agr/2004 A.Y. 2001-02 Memo Devi (Copy enclosed Pg. 13/1 to 13/6). 10. That no new adverse information has been brought on record which could suggest to initiate proceedings u/s 147/148, in spite of specific request of the appellant vide letter dt. 24.11.2010. (Copy enclosed, Pg.3/2 to 3/3). 11. That in the proceedings u/s 147 the burden is on the A.O. to prove income escaping assessment as it the belief of the A.O. for income escaping assessment. Reliance Placed: Tin Manufacturing Co. of India Vs. CIT [19961 88 Taxmann 34 (Allahabad)....
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.... ITAT Agra in the case of DCIT Circle 4(1) vs. Sanjay Kumar Agarwal (HUF) (ITA No. 290/Agra/2010 AY 2001-02), in which the Hon'ble ITAT while following and applying the decision of the Hon'ble Supreme Court in Pusthottam Das Bangur (supra) has held the reI. T.A No. 268/Agra/2016 15 assessment proceedings were validly initiated by the AO. The AO in the said case has recorded the following reason of his satisfaction:- "On the basis of information received from Addl. D1T (Inv.), Agra vide his letter dated 20.03.2008 through Addl. CI T, Range-4, Agra's letter F. No. Addl. CIT/R-4/Agra/R- 4/Agra/Accommodation Entries /2007-08 dated 24.03.2008, that the assessee has obtained accommodation entries and received an amount of Rs. 8,39,212/- on F.Y. 2000-2001 through cheque No./Other No. 121983/111 by arranging/obtaining unreliable document etc. in the form of share application money/capital gains/gifts etc. during the F. Y. 2000-01 from Aayushi Stock Broker Pvt. Ltd. Sanjay Place, Agra and the same is deposited in her bank account of ANZ Grindlays Bank. On the basis of information received from Add!. DIT(Inv.), Agra vide hisletter dated 20.03.2008, I have reason to believe tha....