TaxTMI 
TaxTMI 
2016 (7) TMI 1555
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....ntly contended that the reassessment proceedings initiated u/s 147 are invalid and void ab initio. The proceedings has been initiated just for the purpose of verification of facts. Our attention was drawn towards the reason to believe. There was no material being brought on record which shows that the assessee has escaped the income. Therefore, it was contended that the proceedings has illegally been initiated and therefore, the assessment must be quashed. Learned D. R. on the other hand relied on the order of CIT(A). 3. We have heard the rival submissions, carefully considered the same along with the orders of the tax authorities below. In this case we noted that the Assessing Officer has initiated the proceedings u/s 147 of the Act by ....
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....iated the proceedings on the basis of the information received from Dy. Director of Income tax (Inv.), which was gathered during the course of search carried out in the case of M/s Santosh Group of Institutions & Dr. P. Mahalingham. During the course of survey, certain documents and books were seized from the premises H1 to H6, Santosh Nagar, Pratap Vihar in which there were details for the receipt of donation/capitation fees. The name of the assessee was there and it shows that the assessee had paid donation/capitation fees amounting to Rs. 23 lac on 14/07/2006. The Assessing Officer therefore, recorded the reason that the income to the tune of Rs. 23 lac has escaped the assessment for the impugned assessment year. At the time of initiatio....
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....t nexus or live link between the material coming to the notice of the Income-tax Officer and the formation of his belief that there has been escapement of the income of the assessee from assessment in the particular assessment year. Bonafide of the reasons can be looked into by this Tribunal. It is a case where, in our opinion, the reasons recorded are bonafide. We, therefore, dismiss ground Nos. 1 to 4 taken by the assessee. 4. Ground Nos. 5 to 8 of the appeal relate to the sustenance of addition of Rs. 23,00,500/- by the CIT(A). The brief facts related to this issue are that the assessee's son Ajay Pratap Singh appeared in Pre Medical Examination for M.B.B.S. course provided by Santosh Medical College, Ghaziabad. The assessee had paid ....
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....ued that the addition cannot be sustained. The assessee has never made payment to Santosh Medical College, Ghaziabad. The assessee is not connected with the management of Santosh Medical College, Ghaziabad and is not aware of how they have entered the assessee's name in respect of the cash received in this regard. But the main thrust of argument was that the addition has been made on the basis of the record of the third party for which no opportunity has been given to the assessee to cross examine the said person. In this regard, Learned A. R. of the assessee vehemently relied before us on the legal proposition as laid down by Hon'ble Supreme Court in the case of Andman Timber Industries vs. Commissioner of Central Excise in Civil Appea....
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....d dealers could not have brought out any material which would not be in possession of the appellant themselves to explain as to why their ex-factory prices remain static. It was not for the Tribunal to have guess work as to for what purposes the appellant wanted to cross-examine those dealers and what extraction the appellant wanted from them. As mentioned above, the appellant had contested the truthfulness of the statements of these two witnesses and wanted to discredit their testimony for which purpose it wanted to avail the opportunity of cross-examination. That apart, the Adjudicating Authority simply relied upon the price list as maintained at the depot to determine the price for the purpose of levy of excise duty. Whether the....
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....he Assessing Officer, instead of providing the said party to the assessee for his cross examination, asked the assessee to bring a certificate from the college i.e. from that third party that no cash payment of Rs. 23,00,500/- was made by the assessee at the time of admission of his son. This action of the Assessing Officer clearly proves that the addition has been made by the Assessing Officer on the basis of the evidence found from the third party and as has been recorded by the third party. It is undisputed fact that the documents on the basis of which addition has been made in the case of the assessee were not found from the assessee. The entries are also not in the hand writing of the assessee in the documents found during the course o....