TaxTMI 
TaxTMI 
2009 (1) TMI 58
X X X X Extracts X X X X
X X X X Extracts X X X X
.... 1999-2000. 2. Facts. The assessee filed the income-tax return for the assessment year 1999-2000 on August 30, 1999, declaring an income of Rs. 1,15,482. The assessment was made under section 143(1)(a) of the Income-tax Act, 1961 (for short "the Act"), on June 8, 2000, accepting the declared income of the assessee. Subsequently, this assessment order was examined by the Assistant Director of Income-tax (Investigation) -II, Chandigarh. The Assistant Director suspecting the genuineness of the gifts received by the assessee-donee from Mohinder Singh, informed the Additional Commissioner of Income-tax, Range-I, Chandigarh, to reassess the income of the assessee for the assessment year 1999-2000. 3. Notice was issued to the assessee under ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....fter examining the entire evidence, affirmed the findings of the Income-tax Officer by order dated February 9, 2007 (P-2). 5. Being dissatisfied with the orders of the Income-tax Officer and the Commissioner of Income-tax (Appeals), the assessee filed an appeal before the Income-tax Appellate Tribunal and, vide the impugned order, the appeal of the assessee was dismissed. 6. Learned counsel for the appellant-assessee contended that the conclusions drawn by the authorities below including the Income-tax Appellate Tribunal were based on surmises, conjectures and suspicion which cannot be substitute for proof or evidence. Improper inference drawn from proven facts gives rise to substantial question of law. It was also argued that even if....
X X X X Extracts X X X X
X X X X Extracts X X X X
....on offered by the assessee in the opinion of the Assessing Officer is not satisfactory, it is only then the sum so credited may be charged to income-tax as the income of the assessee of that previous year. The expression "the assessee offers no explanation" means where the assessees offer no proper, reasonable and acceptable explanation as regards the sums found credited in the books maintained by the assessees. It is true the opinion of the Assessing Officer for not accepting the explanation offered by the assessees as not satisfactory is required to be based on proper appreciation of material and other attending circumstances available on record. The opinion of the Assessing Officer is required to be formed objectively with reference to t....
X X X X Extracts X X X X
X X X X Extracts X X X X
....of Income-tax (Appeals). His statement (P-4) was recorded. He belongs to village Kishangarh Pharwahi, Tehsil and District Mansa. He has stated (i) that he was the owner of 11-12 acres of agriculture land; (ii) that his income was Rs. 2 lakhs per annum; (iii) that his family consists of his wife, son, son's wife and three grand children; (iv) that an amount of Rs. 60,000 was spent by him on household expenses; (v) that he knew the assessee because the assessee's father was running a coal depot at Budhlada; (vi) that he was not aware about the age of the assessee and names of the members of the assessee's family; (vii) that he never visited the house of the assessee at Chandigarh; (viii) that he has no bank account; (ix) that he has never mad....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... source of such sums found credited in the books of the assessees is in the opinion of the Assessing Officer not satisfactory. Such opinion formed itself constitutes a prima facie evidence against the assessees relating to the receipt of money, and if the assessees fail to rebut the said evidence the same can be used against the assessees by holding that it was a receipt of an income nature as held in Sumati Dayal's case [1995] 214 ITR 801;[1995] Suppl (2) SCC 453. 12. Authorities relied upon by learned counsel for the appellant have been perused. 13. In Murlidhar Lahorimal's case [2006] 280 ITR 512 (Guj), the assessee filed a return of income showing a sum of Rs. 50,000 as gift received. The donor had filed a return of gift in respec....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ce adduced by the assessee showing the position of the alleged creditors and their financial ability. The alleged creditors had made a confession before the respective Income-tax Officers who were assessing them that they had never lent these money. Though these allegations were not made in any proceeding in which the assessee was a party but those statements were brought to the notice of the assessee who was given an opportunity to contradict or bring evidence contrary thereto. Notwithstanding the assessee did not lead any evidence and as such the conclusion reached by the Income-tax Officer was upheld by the hon'ble Calcutta High Court. 15. So far as the first authority is concerned, in the said case, assessee succeeded in proving the ....