TaxTMI 
TaxTMI 
2023 (4) TMI 1094
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.... income for the A.Y. 2011-12 on 20.11.2012 declaring total income of Rs..1,60,630/-. There was no scrutiny assessment selected in this case and subsequently, this case was reopened u/s 147 of Income-tax Act, 1961 (in short "Act"), after recording the reasons. Accordingly, notice u/s.148 of the Act was issued on 31.03.2019 and served on the assessee. In response assessee filed the return of income on 02.04.2019 and declared return of income as per original return of income. 3. Subsequently notices u/s. 143(2) and 142(1) of the Act were issued and served on the assessee. The reasons recorded for reopening the assessment are "The information was received from the DDIT(Inv.) Unit 7(3), Mumbai that the assessee had paid the annual premium of ....
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.... Capital Gain/Loss, if any, on the share transaction are offered to tax. Since, assessee did not respond to the above said notices based on the information available on record, Assessing Officer proceeded to make the addition u/s. 68 of the Act. 6. Aggrieved assessee preferred an appeal before the Ld.CIT(A) and before the Ld.CIT(A), assessee has submitted his submissions in detail as under: - [assessee has not pressed Ground No. 1 on reopening of assessment, therefore we reproduce the submissions only relating to Ground No. 2 and 3] "a. The learned A.O. erred in making an addition of Rs:6,00,000/-for want of proof of source of insurance premium paid by the appellant to the insurance company which are available with the appellant....
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....eted the assessment on the basis of details available on record However, ITO has wrong information (may be wrongly given by Insurance Compact viz. Sub Life Dhan Suraksha-3) Information given by ITO in Assessment order (para no 3) about premium payment of Rs. 6 Lakhs As per Assessment order Facts Policy No Policy Issue date Premium Amount Bank Name Mode of Payment First premium receipt date (Given by Star Union Da/ Ichi) Bank Name Mode of Payment 00325087 29.04.2011 3,00,000/- Bank of India Andheri (West) CH No 146324 Dated 22.03.2011 31.03.2011 Punjab & Maharashtra Co - OpBank Ltd, Fort CHno42111 debited by bank by 19.03.2011 00481129 31.0.2012 3,00,000/- Bank of India Andher....
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....t of the assessee regarding the payment of insurance premium, from bank accounts, by way of cheque, cannot be accepted as credible argument which can explain the sources of income of these payments. Therefore, the addition made by the AO to the tune of Rs. 6,00,000/- is confirmed and this ground of appeal is also dismissed." 8. Aggrieved assessee is in appeal before us raising following grounds in its appeal: - "1. In the facts and the circumstances of the case and in law, the learned A.O. erred in passing the order u/s 143(3) r.w.s 147 only on the basis of information received from the insurance company in respect of premium paid by the appellant and thereby making the reassessment only on the basis of borrowed satisfaction. ....
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.... With regard to Ground Nos. 2 and 3, Ld. AR of the assessee submitted that the assessee has not maintained any bank account in Bank of India, Andheri Branch and assessee has submitted all other informations along with the bank statements in which assessee has maintained bank account were submitted before tax authorities, the issue raised may be because of misreporting by the insurance company. He submitted that tax authorities have observed the total income declared by the assessee in the return of income in which it is declared net income not the gross income. He submitted that the tax authorities themselves have observed that assessee has other transactions like share transactions and other income, this itself clearly shows that assessee ....