TaxTMI 
TaxTMI 
2026 (3) TMI 873
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....7. 2. The assessee has raised the following grounds of appeal: "1. The Ld. CIT(A) has erred in law as well as on fact by upholding addition of Rs. 82,61,000/- made by Ld. AO being capital introduction in firm M/s Shiv Shakti Cold Storage treated as unexplained investment u/s 69 of the Act. 2. The Ld. CIT(A) has erred in law as well as on fact by rejecting additional evidences submitted during the appellate proceeding. 3. The Ld. CIT(A) has erred in law as well as on fact by dismissing appeal of assessee despite ample evidences submitted such as cash flow statement, source of capital introduction, purchase and sales invoices, Financial statement of assessee. 4. The Ld. CIT(A) has erred in law as well as....
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....sessing Officer was not satisfied with the reply filed by the assessee. In the absence of satisfactory explanation and supporting documentary evidence, the Assessing Officer completed the assessment under section 147 read with section 144B of the Act. The Assessing Officer treated the entire sum of Rs. 82,61,000/- introduced as capital in cash as unexplained investment under section 69 of the Act and added the same to the income of the assessee. Consequently, the total income was assessed at Rs. 86,66,570/-. 5. Aggrieved by the reassessment order, the assessee preferred an appeal before the Commissioner of Income-tax (Appeals). Before the CIT(Appeals), the assessee raised grounds challenging both the validity of the reassessment proceedi....
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....unaudited and self-prepared documents and that no contemporaneous or independent evidence was produced to substantiate the existence and accumulation of a large opening cash balance. Considering the modest income declared by the assessee in earlier years, the CIT(Appeals) held that the claim of accumulation of such a large cash balance to be improbable and unsupported. 7. Regarding the claim of cash availability from potato trading, the CIT(Appeals) observed that the assessee had failed to produce reliable evidence of purchases, transportation, delivery of goods, or genuine trading activity. The CIT(Appeals) further held that even assuming some trading activity, the gross sales could not be treated as cash available for capital introduct....
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.... challenge the re-opening of assessment proceedings on the ground that the "reasons" for reopening the assessment proceedings are only a roving enquiry and based on "borrowed satisfaction" on the basis of information received from DCIT, Gandhinagar Circle that assessee has introduced new capital in cash of Rs. 82,61,000/- in the firm M/s.Shiv Shakti Cold Storage, Deesa during the year under consideration. Accordingly, the Counsel for the assessee submitted that for this reason, the assessee assessment order is liable to be set aside. 10. We have heard the rival contentions and perused the material on record. 11. The only issue seriously pressed before us by the learned counsel for the assessee is with regard to the validity of initiat....
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....ettled that information received from another wing of the Department can form a valid basis for reopening, provided the Assessing Officer applies his own independent mind to such information. In the present case, the Assessing Officer has not acted merely on the information received, but has analysed the same in the context of the assessee's return of income and has independently recorded reasons demonstrating his satisfaction that income had escaped assessment. We also note that at the stage of reopening, the Assessing Officer is not required to finally establish escapement of income. This legal position has been reiterated by the Hon'ble Supreme Court in Raymond Woollen Mills Ltd. v. ITO [1999] 236 ITR 34 (SC), wherein it was held that wh....