TaxTMI 
TaxTMI 
2018 (10) TMI 1724
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....d on facts and in law in upholding the validity of the assessment made u/s 147 of the IT Act, 1961. 2. The ld. CIT (A) has erred on facts and in law in confirming the finding of AO that the cash of Rs. 51,27,435/- recovered by ACB, Jaipur from House No. 20/147-148, Kaveri Path, Mansarover, Jaipur of Smt. Sushma Singh and Rs. 70,32,900/- recovered from House No. 11, Kaveripuram, Dayal Bagh, Agra of Sh. Rajveer Singh aggregating to Rs. 1,21,60,335/- belongs to assessee. 2.1. The ld. CIT (A) has erred on facts and in law in confirming the addition of Rs. 1,21,60,335/- made by AO by treating the said cash as unexplained income of the assessee u/s 69 of the IT Act. He has further erred in confirming the addition without considering the legal contentions raised and evidences filed by the assessee by simply reiterating the observation of DDIT (Inv.)-I, Jaipur reproduced in the assessment order by holding that evidences relied by assessee are self serving in nature and a ruse to camaflogue the real source of cash. 3. The ld. CIT (A) has erred on facts and in law in confirming the addition in the hands of assessee and also confirming the protective addition in hands of person who c....
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....hands of Shri Subhash Singh on substantive basis and protective assessments framed in the name of the other five persons. 3. Before us, the assessee has raised various objections including the validity of reopening of the assessment under section 147/148 of the IT Act. The main thrust of the contention of the ld. A/R on the issue of validity of reopening is that the AO has reopened the assessment only on the basis of the information received from ADIT/JCIT Range Bharatpur without conducting any verification or enquiry on his own to have the reasons to believe that income of the assessee has escaped assessment. The ld. A/R has referred to the reasons recorded for reopening of the assessment and submitted that though the AO has mentioned in the reasons that enquiries were made at his end but nowhere in the assessment order there is any discussion as to what enquiry was conducted by the AO before recording the reasons for reopening. Thus the ld. A/R has submitted that reasons recorded by the AO are inconsistence with the actual facts and, in fact, the AO has only gone by the report of the DDIT Investigation, Jaipur without applying his own mind. Thus it is evident that the AO has no....
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.... nexus to the belief that the income assessable to tax has escaped assessment. It is not a simple case of report of ADIT but the cash of more than Rs. 1.21 crores was found at the various premises and more than Rs. 50,00,000/- was found at the premises where the assessee was also residing. Therefore, the report of the ACB Jaipur coupled with the investigations carried out by the ADIT of the Revenue Department, constitute a tangible material to form a reasonable belief that the income assessable to tax has escaped assessment. It is pertinent to note that the assessee was a General Manager working in the National Agricultural Co-operative Marketing Federation of India Ltd. and the only known source of income of the assessee was salary income and, therefore, recovery of huge amount of more than Rs. 50,00,000/- from the premises at Jaipur along with the seizure report/memo prepared by the ACB prima facie sufficient to form a reasonable belief that the income assessable to tax has escaped assessment. The ld. CIT (A) has considered this issue in para 4.4 to 4.7 as under :- " 4.5. I have perused the assessment order as well as remand report of the AO, submissions made including judicia....
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....vidence with the AO to establish that the cash found during the search belongs to the assessee and further each and every penny found during the search was explained with the supporting evidence. The ld. A/R has referred to the statements of these persons as well as the evidence to show that the source of the cash found during the search was duly explained by these persons. Further, he has submitted that once these persons have accepted the cash belonging to them and also explained the source, then there was no basis to treat the said cash belongs to the assessee. The assessment was also completed in case of those persons and the AO has accepted the source explained by those persons. Even in case of the cash found at the premises House No. 11, Kaveripuram, Dayal Bagh, Agra, the brother-in-law of the assessee has explained the cash belong to the business entities and it was also recorded in the books of business entities. He has referred to the assessment orders of the business entities wherein the said cash was duly recorded in the books of account and the AO has accepted the said cash in the books of those entities. Thus once the AO has accepted the source of cash found during the....
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....no separate enquiry or investigation was conducted by the AO during the assessment proceedings. The AO has only referred to the report of the Investigation Wing which in turn is based on the search memo of ACB, Jaipur wherein all the facts were narrated as how the cash was found during the search conducted by the ACB Jaipur on 22nd May, 2005. We have gone through the entire assessment order running into 15 pages. The AO has reproduced the report of the Investigation Wing which in turn refers to the search memo of the ACB and the finding of the AO is only at page 15 as under :- " Thus, in view of the above facts the total seized amount of Rs. 1,21,60,335/- is unexplained in term of section 69 of the I.T. Act. Therefore, same is added to the total income of the assessee on substantive basis." Thus it is clear that the AO has neither conducted any enquiry nor brought any other evidence or material on record to prove that the cash found by the ACB from these three premises belongs to the assessee and it was an undisclosed income of the assessee. The AO has reproduced the said information received from the Investigation Wing in 14 pages and thereafter has added the said amount of R....