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2019 (11) TMI 517 - ITAT CHANDIGARHRevision u/s 263 - gift received from HUF - whether HUF can be considered as a relative or not ? - distinction between lack of inquiry and inadequate inquiry - case reopened for assessment - HELD THAT:- Gift received by the assessee in that case was from his HUF. The assessee was the member of HUF from where gift came to the assessee. The assessment was reopened for conducting an inquiry about the gifts received from Satish Garg HUF. The assessee is not member of Satish Garg HUF. Therefore, the Assessing Officer has erred in construing position of law while accepting the stand of the assessee. A perusal of the assessment order would indicate that no proper inquiry has been made by the Assessing Officer with regard to construing the meaning of expression “relative” employed in section 56(2) of the Act. The Assessing Officer has based his finding on a decision where HUF has given gifts to its members, and not stranger HUF, therefore, order of the Assessing Officer is erroneous to this extent. Without going into the larger aspect, whether HUF can be considered as a relative or not, we examine the aspect, whether the Assessing Officer has conducted an inquiry and formed an opinion on the basis of record available before him. He has misread the judgment and applied on the given facts without elaborate discussion. Therefore, to this extent, we are of the view that the ld.Commissioner has rightly taken cognizance under section 263, and has rightly set aside the assessment order. As far as additional show cause notice issued under section 263 on 21.3.2018 is concerned, by way of this notice, the ld.Comissioner wish to inquire the gift received by the assessee for ₹ 6 lakhs from his HUF. We find that this issue was not subject matter of reassessment. The assessment was not reopened for conducting an inquiry on this issue, and therefore the ld.Commissioner cannot take cognizance of an issue which has already attained finality in the regular assessment order passed under section 143(3) on 13.3.2014. The Assessing Officer has nowhere inquired this issue in the assessment order; nor it was subject matter of re-assessment. Therefore, it could not be taken up by the ld.Commissioner for taking up this issue. He should have questioned the original assessment order passed under section 143(3) on 13.3.2014, which has not been done by him. Therefore, the finding of the Commissioner recorded qua additional show cause notice is concerned, is not sustainable. We quash this finding and part of that order is vacated.
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