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TMI Blog2017 (3) TMI 259X X X X Extracts X X X X X X X X Extracts X X X X ..... t done on him. 3. Facts apropos are that assessee had filed a return of income for the impugned assessment year in a status of HUF disclosing income of C1,82,089/-. Ld. Assessing Officer was having information regarding purchase of 2.89 acres of land by the assessee alongwith four other persons, from one Smt. K. Sathya on 21.05.2007. In the return of income filed by the assessee in the HUF status the investment in the above property was not disclosed. Hence notice u/s.148 of the Income Tax Act, 1961 (in short ''the Act'') was issued to the assessee. Thereupon assessee requested the ld. Assessing Officer to treat the return originally filed as one filed in pursuance to such notice. Thereafter notice u/s.143(2) of the Act was also issued to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o was the mediator for the purchase of the above property. Shri. Dilli Raja it seems had admitted that cash of C55,00,000/- pertaining to the first of the two properties was held by him in the safe custody and later transferred to the seller and her daughters. Though the assessee argued before ld. Assessing Officer that receipt of C55,00,000/- alone was acknowledged by Smt. K. Sathya to have been received in cash from the assessee, this was not accepted by the ld. Assessing Officer. According to him, Smt. K. Sathya had produced copies of receipts with regard to both properties and Shri. Dilli Raja the mediator had accepted payment of on-money. He held that assessee had not disclosed investment for 1/5th share in both these properties. Total ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tted payment of on-money. As per the ld. Commissioner of Income Tax (Appeals), Ld. Assessing Officer had successfully discharged his burden of proof by issuing summons to Smt. K. Sathya who had accepted receipt of on-money. He confirmed the additions made by the ld Assessing Officer. 6. Now before me, ld. Authorised Representative submitted that the assessment was bad in law since it was initiated on a return filed by the assessee in HUF status. As per ld. Authorised Representative Assessing Officer if he found that the property was purchased in the individual status of the assessee, ought have issued notice u/s.148 of the Act to the assessee in his individual status. This was never done. Notice was admittedly issued in the status of HUF. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee alongwith 4 co-owners from one Smt. K.Sathya on 21.05.2007 connected in the case of Shri. Dilli Raja who is assessed in his ward. On examination of the Return of Income filed by the assessee Shri. Deen Dayal Kothari for the AY 2008-09 in HUF status, it is seen that the investment in the above property has not been disclosed. So, the undersigned has reason to believe that there is an escapement of income and the assessment was reopened. Notice u/s. 148 was issued on 07.07.2011. The assessee had written a letter stating that the return already filed may be treated as the return filed in response to the notice u/s.148''. The properties purchased by the assessee as per ld. Assessing Officer, was not disclosed in the return filed by th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act. For its contention that once assessment proceedings has been started in the status of HUF, it ought to have been concluded only in the status of HUF and not as an individual, ld. Authorised Representative has relied on the Third Member decision in the case of Suraj Mal, HUF(supra). In the said case, the original return was filed in the status of individual but final assessment was completed in the status of HUF. What was held by the Bench at para 16 of the order is very relevant, and this is reproduced hereunder:- ''16. In the case of AAC vs. Late B. Appaiah Naidu 1974 CTR (SC) 147: (1972) 84 ITR 259(SC), their Lordships held as under : "Now coming to the second question as noticed earlier, the assessment was made in respect of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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