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TMI Blog2022 (8) TMI 247X X X X Extracts X X X X X X X X Extracts X X X X ..... tement of assessee s wife Smt. Meena Nausik Desai - Form perusal of the document we find there several deposit were matured during F.Y. 2009-10 and maturity amount were credited in the bank account of Smt. Meena Nausik Desai. All these deposit were created during F.Y. 2007-08 and 2008-09 in USD. We further find an amount of Rs. 50 Lakh and 35 Lakh were transferred from bank account of Smt. Meena Nausik Desai to the assessee bank as on 02-12-2010 and 24-12-2010 respectively. From the above documentary evidences there remains no doubt with regard to sources of fund in the hand of the assessee which were utilized in making investment in mutual fund. Thus we are of the considered view that the assessee has sufficiently discharged the obligat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n facts and circumstances of the case and in law, the learned CIT(A) erred in upholding the action of the AO in invoking the reassessment proceedings. 2. The Appellant craves before your Honour's that the said reassessment proceedings as undertaken by the AO, should be set aside, and quashed as the said proceedings were invoked without complying with the pre-requisite as laid down in Section 147 read with Section 151 of the Income-tax Act, 1961 ( the Act ), thereby the said proceedings being void ab initio and bad in law. Ground No.3 1. On facts and circumstances of the case and in law, the learned CIT(A) erred in upholding the action of AO in assessing the investments made in Mutual funds by the Appellant aggregating t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Act without considering the materials available on record. 5. The AO during the assessment proceedings under section 147 of the Act found that the assessee has made investments in the units of Mutual for Rs. 80 Lakhs. Accordingly a question was raised for an explanation about the sources of the investment. However, the assessee failed to make submission or explanation. Thus, the AO in absence of explanation from the assessee treated the same as unexplained investment under section 69 of the Act and added to the total income of the assessee. 6. Aggrieved assessee preferred an appeal before CIT (A). 7. The assessee before the learned CIT(A) submitted that under the provision of section 69 of the Act, he is required to explain the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,00,000/-\ 3? Reliance Mutual Fund on 31.03.2011 and it has been stated that the investment of Rs.80,00,000/- was made out of his HDFC Bank account No. 00011010018185. As to the source thereof it has been stated that Rs.50,00,000/- and Rs.35,00,000/- were transferred from his spouse's (Smt. Meena Desai) HSBC Bank account No. 012345062006 on 02.12.2010 and 24.12.2010 respectively. The appellant has furnished the copies of the mutual fund statements and HDFC bank account statements. The bank statement of the account of Smt. Meena Desai with HSBC Bank was provided to the extent showing remittance of Rs.50,00,000/- and Rs.35,00,000/- to the appellant, Shri , Naushik Desai. It is seen that the addresses in the mutual fund statements and bank ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the appellant and no return of income was filed. Thus primafacie the AO had reason to believe the escapement of income. The AO has followed the prescribed procedure for issue of notice u/s.148 and assessment u/s. 147. I do not find any infirmity in the proceedings u/s.148/147. Furthermore, the appellant and/or his A/R has not pointed out to any specific error and any case laws which may be held to have initiated the proceedings being challenged in this appeal. 1 Furthermore section 69 creates a fiction that if an assessee offers no explanation as to the source of investment or if the explanation furnished is not found satisfactory by the AO, such unexplained investment shall be treated as deemed income of the assessee. Thus the related ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... IT (A) has explained that the investment was made out proceeds from NRO account fixed deposit jointly in the name of assessee and his wife made with HSBC Bank Pedder Road Mumbai. The proceeds of FD maturity was transferred to assessee wife bank account and from there an amount of Rs. 85 lakh was transferred to the assessee bank account and accordingly investment was made in the unit of mutual fund of different banks for an amount aggregating to 80 Lakh. The explanation of the assessee was rejected by the learned CIT (A) for the reason that it was not established that investment was made out of foreign remittance. We have perused the paper book submitted by the assessee where FD maturity advice along bank statement of assessee s wife Smt. Me ..... X X X X Extracts X X X X X X X X Extracts X X X X
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