2018 (9) TMI 1865

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.... ORDER C.M.Garg,    This appeal has been filed by the Assessee against the order of Commissioner of Income Tax (Appeals), Valsad ('CIT(A)' for short) dated 14.11.2014 for the Assessment Year (A.Y) 2007-08. 2. The grounds of appeal raised by the Assessee read as follows: 1. Lr. CIT(A) Valsad has erred in law and on facts to uphold reopening of assessment made by the A.....

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....ginal assessment proceedings. 4. Replying to the above, the ld. Departmental Representative (DR) submitted that the assessee had paid Rs. 9,60,000/- in cash to Shri Suresh C. Desai for purchase of land and this amount of an expenditure was required to be disallowed u/s. 40A(3) of the Act. The ld. DR also submitted that failure to do so resulted into short levy of tax of Rs. 4,29,770/- therefore....

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....he AO, it is noticed that the assessee had paid Rs. 9,60,000/- in cash to Shri Suresh C. Desai, which required to be disallowed u/s. 40A(3) of the Act. Thereafter, in last para, the AO jumped to form a reason to believe that the income has escaped assessment therefore, notice u/s. 148 of the Act being issued within the meaning of s. 147 of the Act. 6. Above noted analysis of reasons recorded cl....