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TMI Blog2021 (8) TMI 205X X X X Extracts X X X X X X X X Extracts X X X X ..... was justified in confirming the addition made in the hands of the assessee in the sum of Rs. 11,50,000/- on account of unexplained investment u/s.69 of the Act in the facts and circumstances of the instant case. 3. We have heard rival submissions and perused the materials available on record. We find that assessee is an individual and had filed his original return of income for the A.Y.2013-14 on 03/07/2013 declaring total income of Rs. 2,25,880/-. Admittedly, no assessment was framed on this return. Thereafter, this assessment was sought to be reopened by issuing notice u/s.148 of the Act on 09/03/2016 by recording the following reasons:- " In this case, an information has been received from DDIT(Inv.), Unit-VII-(3), Mumbai, wherein it has been stated that during the recording of statement of Shri Jignesh Jayantilal Doshi u/s. 131 of the IT. Act, 1961, he has confirmed that he has received an amount of Rs. 23,00,000/- in cash from Shri Navin C. Punjani, Nisha Navin Punjani and Chirag Navin Punjani over and above the cheques of Rs. 19,75,000/- as mentioned in the registered sale deed executed on 12-11-2012 in respect of sale of shop no. 11, Hari Bhuvan Co-op. Hsg. Soc., Zaveri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tement of Shri Jignesh Jayantilal Doshi, the Investigation wing passed on the information to the ld. AO of the assessee and the ld. AO recorded the same in the reasons and reopened the assessment of assessee for the A.Y.2013-14. The assessee sought for cross examination of Shri Jignesh Jayantilal Doshi during the course of assessment proceedings. Accordingly, the ld. AO of the assessee issued summons to Shri Jignesh Jayantilal Doshi u/s.131 of the Act which remained unresponded by Shri Jignesh Jayantilal Doshi. However, pursuant to the summons, the assessee duly appeared before the ld. AO and the statement on oath u/s.131 of the Act was recorded from him on 29/12/2016 wherein assessee had clearly stated in response to Question No.6,7 & 8 that he was owner of 1/3rd share in the property purchased from Shri Jignesh Jayantilal Doshi; that he had not paid any cash to Shri Jignesh Jayantilal Doshi over and above the cheque payment for purchase of property ; that he knows Shri Jignesh Jayantilal Doshi as Shri Jignesh Jayantilal Doshi was doing business opposite to his shop; and Shri Jignesh Jayantilal Doshi was introduced to assessee through his friend who is an estate agent by name Shr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essee. It was argued that the cash of Rs. 23,00,000/- has been seized from the premises of Shri Jignesh Jayantilal Doshi (seller of the shop) hence, the presumption in terms of Section 132(4A) and r.w.s. 292C of the Act would lie in favour of Shri Jignesh Jayantilal Doshi wherein onus is on Shri Jignesh Jayantilal Doshi to prove that the said cash does not represent income in his hands. 4.1. The ld. DR before us pointed out that Shri Jignesh Jayantilal Doshi had revised his return of income in the relevant year by including this Rs. 23,00,000/- cash portion also as part of sale consideration of shop and had paid capital gains tax thereon. 4.2. The ld AR argued that there is absolutely no evidence brought on record by the ld. CIT(A) to come to a conclusion that cash was received by seller from the assessee 2-3 days prior to the date of registered sale deed. As far as the assessee is concerned, he alongwith his relatives had purchased the entire property for Rs. 19,75,000/- as against the market value as per ready reckoner rates at Rs. 18,44,189/- which figure is mentioned in the written submission of the ld. AR and the same is considered as a statement made from the Bar. No contra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ard rival submissions and perused the materials available on record. We find that assessee had filed her original return of income for the A.Y.2013-14 on 03/07/2013 declaring total income of Rs. 2,14,520/-. Later her assessment was sought to be reopened by issuance of notice u/s.148 of the Act on 09/03/2016 after recording the following reasons for reopening:- "In this case, an information has been received from DDTT(Inv.) Unit-VII-(3), Mumbai, wherein it has been stated that during the recording of statement of Shri Jignesh Jayantilal Doshi u/s. 131 of the I.T. Act, 1961, he has confirmed that he has received an amount of Rs. 23,00,000/- in cash from Shri Navin C. Punjani, Nisha Navin Punjani and Chirag Navin Punjani over and above the cheques of Rs. 19,75,000/- as mentioned in the registered sale deed executed on 12-11-2012 in respect of sale of shop no.11, Hari Bhuvan Co-op. Hsg. Soc., Zaveri Road, Mulund (W), Mumbai ~ 400 080. As the information received from the DDIT(Inv.), Unit-VII(3) that Shri Navin C. Punjani, Nisha Navin Punjani, Chiiag Navin Pujani have made the payments of Rs. 23,00,000/- in cash and Navin C. Punjani, is assessed with this change and to verify the tr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ose reasons. No inference can be allowed to be drawn based on reasons not recorded. It is for the Assessing Officer to disclose and open his mind through reasons recorded by him. He has to speak through his reasons. It is for the Assessing Officer to reach to the conclusion as to whether there was failure on the part of the assessee to disclose fully and truly all material facts necessary for his assessment for the concerned assessment year. It is for the Assessing Officer to form his opinion. It is for him to put his opinion on record in black and white. The reasons recorded should be clear and unambiguous and should not suffer from any vagueness. The reasons recorded must disclose his mind. Reasons are the manifestation of mind of the Assessing Officer. The reasons recorded should be self-explanatory and should not keep the assessee guessing for the reasons. Reasons provide link between conclusion and evidence. The reasons recorded must be based on evidence. The Assessing Officer, in the event of challenge to the reasons, must be able to justify the same based on material available on record. He must disclose in the reasons as to which fact or material was not disclosed by the as ..... 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