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TMI Blog2016 (7) TMI 1313X X X X Extracts X X X X X X X X Extracts X X X X ..... eal. I proceed to decide the present appeal after hearing the learned Departmental Representative for the Revenue and also after considering written submissions filed by the assessee. 3. The assessee has raised the following grounds of appeal:- 1. On the basis of facts and in the circumstances of the case and as per law, the assessment made u/s.148 by the AO please be quashed being without jurisdiction. 2. On the basis of facts and in the circumstances of the case and as per law, the assessment made u/s.148 by the AO please be quashed as the proceedings u/s.148 were initiated by him merely due to change in opinion. 3. On the basis of facts and in the circumstances of the case and as per law, the AO is not justified in initiating th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt and issued notice under section 148 of the Act. In response thereto, the assessee filed revised return of income declaring total income of Rs. 1,55,927/-. The assessee was show caused to explain as to why the payments incurred otherwise than by an account payee cheque should not be disallowed, in view of the provisions of section 40A(3) of the Act. The assessee explained that the said amount of Rs. 3 lakhs was made in cash on the date of registration of sale deed before Sub-Registrar of Igatpuri at the request of seller. The confirmation of seller in this respect was also filed. Since the assessee was engaged in carrying on the business of trading in plots, the Assessing Officer was of the view that this cash payment was not to be allowe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Act were not justified. He stressed that the audit objections in the case was raised on the basis of submissions of assessee made during the course of regular assessment proceedings, in which the cash payment of Rs. 3 lakhs was declared. Another contention raised by the assessee was that the impugned proceedings were initiated because of change in opinion on the part of Assessing Officer without there being any extra material on record. Against the merits of cash payment of Rs. 3 lakhs, the assessee explained that the same was paid because of the request of seller as she was not residing at Igatpuri, but was residing at Mumbai and had to incur certain expenditure at Igatpuri, where she did not have any bank account. Further, the sai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... id cash of Rs. 3 lakhs was paid on the request of seller for taking care of certain expenditure at Igatpuri, where the vendor was staying at Mumbai and had no bank account at Igatpuri. The confirmation from the said person Mrs. Meenaben B. Mehta is filed at page 51 of the Paper Book. She acknowledges to have received Rs. 48,50,000/- vide sale deed dated 12.09.2008 from the assessee, out of which Rs. 3 lakhs was paid by the assessee in cash on the date of registration of sale deed before the Sub-Registrar on 12.09.2008. The entire consideration was paid during the course of registration of sale deed. The Assessing Officer further on verification of record noted the details of payment made for purchase of said land, which included Rs. 3 lakhs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reason to believe should have a direct link with the escapement of assessment and the same should be on the basis of some information. However, in the facts of the present case, the Assessing Officer has reopened the assessment on verification of records itself. The case of the assessee in this regard was that the said fact of cash payment for purchase of agricultural land in part has been pointed out by the audit objections and the reopening of assessment on the basis of audit objections is incorrect. I find merit in the plea of the assessee in this regard, where the original assessment was completed under section 143(3) of the Act, the assessee had made the investment in purchase of agricultural land during the year and the necessary deta ..... X X X X Extracts X X X X X X X X Extracts X X X X
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