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TMI Blog2014 (12) TMI 797X X X X Extracts X X X X X X X X Extracts X X X X ..... f receipt of loans from these three persons could be made out by the Revenue, and the addition is deleted - credit entry of ₹ 10,000/- claimed to have been on account of amount received from Shri Pavan Singhal also stands explained, as confirmation from the creditor along with his complete address and PAN card copy was filed before the AO and the CIT(A) - none of the persons are income tax assessee, and no corroborative evidence in support of the case of the assessee was filed by the assessee - the addition made to the extent of ₹ 55,000/- is upheld – Decided partly in favour of assessee. Validity of reopening of assessment u/s 147 - Unexplained deposit cash credit has already been added in the name of Shri Sunil kumar Agrawal or not - Held that:- There was no mistake in the order of the CIT(A) in holding that section 68 applies to the case of Shri Sunil kumar Agrawal since the bank account in which the credit entries were found belonged to him and moreover, the amount of cash credit has already been added in the name of Shri Sunil kumar Agrawal, and it could not be added in the hands of the assessee - merely on the basis of some statement given by Shri Sunilkumar Ag ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee s mother, Smt. Bhavridevi Agarwal, and the assessee has filed confirmation from the mother of assessee, Smt. Bhavridevi Agarwal and has also filed all the copies of sale bills of Samarth Marketing, jeweler at Ahmedabad in evidence of sale of gold ornaments of Smt. Bhavridevi Agarwal. With regard to other deposits of ₹ 4.00 lakhs, the same was explained as loan from brother of Shri Rajkumar Agarwal, for which confirmation letter along with address and PAN card copy was filed before the AO. The AO has not issued summons under section 131 to Shri Rajkumar Agarwal and has made addition without any basis. He submitted that the amount of ₹ 3.00 lakhs was deposited in the bank on receipt of loans from Smt. Rekha Agrawal of ₹ 1.50 lakhs, Ramachandra Agarwal of ₹ 2.00 lakhs, Pavan Singhal of ₹ 10,000/-, Shri Viky Jindal of ₹ 19,000/-, Shri Ramesh Patel of ₹ 17,000/- and Shri Hitesh Shah of ₹ 19,000/-, for which their confirmations and complete addresses were filed before the AO, and the AO has not issued summons under section 131 to them. Moreover, main parties, viz. Rekha Agarwal, Shri Ramachandra Agarwal and Pavan Singhal were existing in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed lady and extent of gold ornaments claimed to have been sold by her could not be said to be excessive. The AO has not made any further inquiry in this regard, and there is no material on record to doubt the genuineness of the documentary evidences filed by the assessee. Accordingly, the credit entry of ₹ 7 lakhs on sale of gold ornaments belonging to the mother of assessee, Smt. Bhavridevi Agarwal has been explained, and we hold that no addition to this extent is called for. Regarding credit entries on receipt of loans from Shri Rajkumar Agarwal, Smt. Rekha Agarwal and Shri Ramachandra Agarwal, they are all close relatives of the assessee and have filed confirmation along with their copy of return and also their PANs. before the AO and the CIT(A). All these three persons are existing income tax assessee, and the AO has not made any adverse comments regarding their assessment records and no summons under section 131 of the Act was issued to these persons. Accordingly, we hold that no case of addition on account of receipt of loans from these three persons could be made out by the Revenue, and accordingly, the addition to the extent of ₹ 5,74,112/- is deleted. Likewi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o.3 of the assessee is partly allowed. 6. The grounds no.1 2 and the assessee are as under: 1. The ld.CIT(A) has erred in not appreciating the fact that the so-called notice under sec. 143(2) has never been served to the assessee nor to his any authorized representative and since admitted by both the authorities that there is no acknowledgement receipt on record of the Department, an as such, the consequential proceedings under sec. 143(3) is itself bad in law, void ab-initio and illegal. 2. In not appreciating the fact that the provision of section 292BB is not applicable to the assessment year in dispute i.e. Asstt.Year 2006-07 as argued before the CIT(A) as per his order parag4 5 para 4.1.3, and as such, the CIT(A) ought to have agreed that since the provision of section 292BB is not applicable and since the notice under section 143(2) has not been served, the whole assessment framed is itself bad in law, void ab-initio and illegal 7. The learned counsel for the assessee submitted that although notice under section 143(2) was issued by the AO, but it was never served on the assessee or his authorized representative, and therefore, the assessment itself is bad in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... efore, the CIT(A) was justified in cancelling reassessment under section 147 r.w.s. 143(3) by observing that since the credits were found in the bank account of another assessee, Shri Sunilkumar Agrawal and same has already been added in the name of Shri Sunilkumar Agrawal, it could not be added in the hands of the appellant, Shri Rajkumar Agrawal. The learned DR has relied on the orders of the AO. 11. We have considered rival submissions. We find that there was no mistake in the order of the CIT(A) in holding that section 68 applies to the case of Shri Sunilkumar Agrawal since the bank account in which the credit entries were found belonged to him and moreover, the amount of cash credit has already been added in the name of Shri Sunilkumar Agrawal, and therefore, it could not be added in the hands of the assessee. We find that the assessee has filed copy of the bank account with Shri Vinayak Sahakari Bank Ltd., Ahmedabad at page no.6 7 of its compilation, wherein various credit entries were found on different dates and the said bank account was in the name of Shri Sunilkumar Agrawal. We find that merely on the basis of some statement given by Shri Sunilkumar Agrawal, it could ..... X X X X Extracts X X X X X X X X Extracts X X X X
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