TaxTMI 
TaxTMI 
2021 (5) TMI 122
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....he Act on 10.07.2014 and thereafter, the case was selected for scrutiny assessment. During the scrutiny proceedings, the details called for were placed on record. The assessing officer had asked the details regarding receipt of gift of Rs. 15,00,000/-. The assessee vide letter dated 11.01.2016 furnished various details including his explanation with regard to gift received from his brother in law amounting to Rs. 15,00,000/- and in support thereof, the copy of declaration of gift made by Mr. B.U.Patel (brother-in-law of the assessee) was also submitted. The assessment order under Section 143(3) of the Act was passed on 29.02.2016 without any further addition and determined the income at Rs. 24,52,260/- as shown in the return of income. The assessing officer did not disallow the amount of Rs. 15,00,000/- duly received as a gift by the assessee. Thereafter, the Assessing office reopened the assessment for the A.Y. 2013-14 by issuing impugned notice dated 26.02.2019 under Section 148 of the Act. Pursuant to the impugned notice, the assessee filed his return of income and requested to provide the copy of the reasons recorded for reopening of the assessment. 3. The assessing officer v....
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....aw vide cheque no 41270 dt.12/04/2012 I.e. same amount on the same day. Thus it is clear that assessee has received back his own amount via cheque which has resulted into under assessment of Rs. 15,00,000/- which has resulted in escapement of income. 4. Enquiries made by the AO as sequel to Information collected/received: - The Capital Account of the assessee, The copy of bank account, declaration of gift on Rs. 100 stamp paper and copy of bank statement of Shri Bhailal U Patel who is brother in law of the assessee from whom gift received are available In assessment records. The information received is processed and examined from the assessment records and material available on record with the department. 5. Findings of the AO:- On verification of case record, during the assessment proceedings assessee has furnished capital account wherein it is seen that assessee had credited an amount of Rs. 15,00,000/- as gift received from Bhailal U. Patel (Brother in law) on 12/04/2012. The same was supported with a declaration of gift on a 100 Rs. Stamp paper and a copy of Bank statement of Shri Bhailal U Patel was kept on record. It was observed from the Corporation Bank statement kept w....
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.... than four years have lapsed from the end of the assessment year under consideration. Hence necessary sanction to issue notice u/s 148 has been obtained separately from Principal Commissioner of Income Tax as per the provision of section 151 of the act." 4. Being aggrieved by and dissatisfied with the impugned notice dated 26.02.2019 as well as the order of disposing the objections, the assessee has come up before this Court with the present writ application. 5. We have heard Mr. R.H.Parikh, the learned counsel appearing for the writ applicant and Mrs. Mauna Bhatt, the learned Standing Counsel assisted by Mr. Karan Sangani, the learned counsel appearing for the revenue. 6. Assailing the impugned notice, the learned counsel appearing for the writ applicant Mr. Parikh submitted that, the impugned notice as well as the order of disposing the objections are bad in law and without jurisdiction. It was contended that, the impugned notice has been issued on 26.02.2019, in relation to the assessment year 2013-14, which is clearly beyond the period of four years from the end of the relevant assessment year and as such, the assessee had disclosed all material facts with regard to receipt ....
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....any merits, may not be entertained. 9. Having heard the learned counsel for the respective parties and having gone through the materials on record, the question falls for our consideration is whether the revenue is justified in reopening the assessment for the year under consideration ? 10. Before adverting to the rival contentions raised by the respective parties, we may refer to the legal position with regard to reopening of the assessment. If the assessing officer has reason to believe that, any income chargeable to tax has escaped assessment for any assessment year, he may subject to the provisions of section 148 to 153 of the Act, assesss or reassess such income, provided that, where an assessment under sub-section 3 of Section 143 of the Act has been made for the relevant assessment year, no action shall be taken under section 147 of the Act after the expiry of four years from the end of the relevant assessment year unless any income chargeable to tax has escaped assessment for such assessment year by reason of the failure on the part of the assessee to disclose fully or truly all material facts necessary for his assessment for that assessment year. 11. In the facts of the....
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....ration of gift, copy of bank account of Shri B.U.Patel. In this factual background, we are of the view that, the assessee had disclosed all material facts truly and fully for the assessment of income for the year under consideration. In other words, there was no failure to disclose primary facts necessary for the assessment on the part of the assessee. 14. We take the notice of the fact that, during the previous assessment proceedings, the specific query was raised by the assessing officer with regard to receipt of gift of Rs. 15,00,000/- and the stand of the assessee before the assessing officer was very much clear that, the amount had been received as a gift from his brother in law and in support thereof, he had submitted copy of the declaration of gift deed. Under the circumstances, it appears that, the assessing officer failed to draw the necessary interference that the transaction of gift of Rs. 15,00,000/- is sham and to avoid the tax liability, the assessee himself deposited the said amount and withdraw it on the same date. During the assessment proceedings, the assessing officer ought to have looked into the matter when all the primary facts duly disclosed by the assessee.....