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TMI Blog2011 (8) TMI 864X X X X Extracts X X X X X X X X Extracts X X X X ..... ure on the part of the assessee to make a return under s. 139 or in response to a notice under sub-s. (1) of s. 142 or s. 148 or to disclose fully and truly all material facts necessary for assessment - assessee had also forwarded the certified true copy of the receipts obtained from the depositors. After discussing the response of the assessee and the evidence produced and other related materials, the AO held that an amount of Rs. 28,15,845 claimed to have been received by the assessee from different secured creditors did not satisfy the requirement of law and that therefore, this figure was added in the income of the assessee under s. 68 of the Act - It, therefore, cannot be stated that the income of the assessee with respect to such item ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 05 has escaped assessment within the meaning of s. 147 of the Act and therefore, he proposed to assess the income. He required the assessee to deliver within 15 days of the receipt of the notice a return in prescribed form. 5. At the request of the assessee, the AO supplied the reasons recorded for reopening the assessment. Mainly, the AO was of the opinion that the assessment was required to be reopened on following three grounds:- "1. In this case, it is noticed that the assessee has taken unsecured loans from the following parties:- 1. R. Bharatkumar Rs. 2,04,200 2. Hemantbhai Arvindbhai Rs. 1,10,980 3. Rajendra R. Shah Rs. 33,660 4. Rajulalben Arvindbhal Rs. 1,10,980 5. Rasilaben R. Doshi Rs. 66,120 Rs. 5,25,940 On ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... were subject-matter of the scrutiny assessment and after detailed discussion, the AO had framed the original assessment on 28th Dec., 2006. It was, therefore, contended that reopening is unwarranted and without jurisdiction. 7. The AO, however, rejected the objections by order dt. 20th Oct., 2010. The petitioner is therefore before us in the present petition challenging both the notice for reopening of the assessment as well as the order rejecting the objections against such reopening proposal. 8. At the outset, we may notice that the previous assessment was a scrutiny assessment under s. 143(3) of the Act and the present reopening is sought to be done beyond four years from the end of the relevant assessment year. Short question, ther ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... first reason already recorded hereinabove, it may be seen that the allegation is that the assessee had not filed any confirmation letter with respect to five individuals from whom the assessee had taken unsecured loans to show the source of income and genuineness of the deposits. 12. With respect to this item, we find that in the assessment order, before framing assessment, the AO, had called upon the assessee to make detailed disclosures about various unsecured liabilities appearing on the credit side of the balance sheet. The assessee was called upon to furnish complete names and postal addresses of the depositors from the year in which the deposit was accepted till the current year. The assessee had also forwarded the certified true c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y disclose all material facts. Counsel for the assessee submitted that three out of the five loans in question were given in the previous years and confirmation of the loanees were on record. He further submitted that with respect to remaining two loans, in response to the AO's query, confirmation letters were also produced. Counsel for the Revenue, however, disputed this assertion contending that though asked for, such details were not supplied. We are, however, of the opinion that we need not go into this disputed aspect. Suffice to state, at any rate, there was no failure on part of the assessee to disclose necessary facts for assessment. 14. With respect to second reason, the same pertains to certain unaccounted loans granted to dif ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... contended that there was no loss to the Revenue. 17. With respect to this reason, we find that while framing the original assessment, the AO had called for various details from the assessee with respect to loans received during the year whether squared up or not, confirmation of different parties alongwith their names, addresses, etc. bank reconciliation statement of all the bank accounts of such parties and details of secured loans obtained during the year alongwith details of securities, assets, etc., if there were creditors or loans outstanding for more than three years details such as, names and addresses of the persons, nature of outstanding entry, total amount involved, etc. In response to such queries, the assessee had made detail ..... X X X X Extracts X X X X X X X X Extracts X X X X
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