TaxTMI 
TaxTMI 
2025 (2) TMI 1329
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....nd that Soni Maloo, Talda and Panapaliya had purchased a land for an amount of Rs. 70 lakhs but the original sale consideration of the property was for Rs. 2,28,50,000/- of which Rs. 70,000/- was paid in cheque and balance of Rs. 1,58,50,000/- was paid in cash to the assessee viz., Taradevi Babulal Patni and other co-selleRs. Accordingly, the assessee viz., Taradevi Babulal Patni had received on-money of Rs. 39,62,500/- being 1/4th share of Rs. 1,58,50,000/- which has been accepted by the members of Soni Maloo, Talda and Panapliya Group. 2.1. The case of the assessee viz., Taradevi Babulal Patni was reopened u/sec.147 of the Act. The assessee filed her original return of income on 31.03.2017 declaring total income of Rs. 3,72,820/-. In response to the notice u/sec.148, the assessee has filed her revised return of income on 17.07.2021 admitting total income of Rs. 4,55,500/-. The Assessing Officer after following the due procedure, completed the assessment u/sec.147 r.w.s.143(3) of the Act and determined the total income of the assessee at Rs. 44,18,000/- as against the returned income of the assessee at Rs. 4,55,500/- after making addition of Rs. 39,62,500/- u/sec.69A of the Act....
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....e reasons recorded for issue of notice u/sec.148 results into assessment framed being bad in law and relied on the decision of Hon'ble Bombay High Court in the case of CIT vs. Videsh Sanchar Nigam Ltd., 340 ITR 66 (Bom.) and PCIT vs. V. Ramaiah 103 taxmann.com 202 (SC). 5.1. Secondly he submitted that the copy of objections submitted for issue of notice u/sec.148 are with the Assessing Officer and the learned Assessing Officer without disposing off the objections filed by the assessee and made assessment u/sec.147 r.w.s.143(3) is bad in law as held by the Hon'ble Supreme Court in the case of GKN Driveshafts (India) Ltd., vs. ITO & Ors 259 ITR 19 (SC). 5.2. Thirdly, he submitted that the impugned additions were made in the hands of the assessee on the basis of 'loose papers' found during the course of search at the premises of Soni Maloo Talda Group and came to the conclusion that the assessee's had received 'on-money' and made the impugned additions on account of unexplained money u/sec.69A of the Act. He submitted that the seized documents does not indicate the names of these assessee's and the loose papers were collected from the premises of third party and as such, they ar....
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....at Assessing Officer had not made verification before recording reasons for issue of notice u/sec.148 even though the loose papers are dumb documents which does not have any evidentiary value by relying on the decision of Hon'ble Supreme Court in the case of ITO vs., Lakhmani Mewal Das 103 ITR 437 (SC) and Ganga Saran & Sons (P) Ltd., vs. ITO 130 ITR 1 (SC). 5.3. Fourthly, he submitted that pursuant to search action u/sec.132(1) of the Act, the Assessing Officer received information and no valid notice u/sec.148 could be issued in the case of these assessee's pursuant to such information received and found in the course of search by relying decision of Hon'ble High Court of Karnataka at Bengaluru in ITA.No.32 of 2020 in the case of M/s. VSL Mining Company Pvt. Ltd., vide order dated 20.09.2024 and decision of Coordinate Bench of Delhi Tribunal in the case of Narendra Kumar in ITA.No.1218/Del./2019 vide order dated 19.07.2023. 5.4. The Learned Counsel for the Assessee lastly submitted that the evidence relied upon has been collected at the back of these assessee's and cannot be used adversely unless the same stood for test of cross-examination. He submitted that in the instant....
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....Learned Counsel for the Assessee, paper books placed on record and the orders of the authorities below. I find that admittedly the Assessing Officer reopened the assessment in the case of these assessee's pursuant to search conducted u/sec.132(1) of the Act. He accordingly recorded reasons u/sec.147 to the effect that 'the income chargeable to tax has escaped assessment' in the hands of these assessee's and issued notice(s) u/sec.148 of the Act. The reasons recorded u/sec.147 of the Act were also furnished to these assessee's. After examining the explanations offered by these assessee's and documents placed on record, the Assessing Officer being not satisfied with the explanations of these assessee's made the impugned addition u/sec.69A of the Act on account of unexplained money and on appeal, the learned CIT(A) sustained the additions made in the hands of these assessee's as well as confirmed the order of the Assessing Officer in reopening the assessment u/sec.147 of the Act. I find that there is a prima facie case in favour of these assessee's in the instant appeals. The cases of these assessee's are reopened on the basis of 'dumb documents/loose sheets' collected from the premis....