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TMI Blog2022 (9) TMI 339X X X X Extracts X X X X X X X X Extracts X X X X ..... recluded from espousing the same issue once again by means of another round of reassessment. Sword of re-assessment cannot be allowed to hang over the head of the assessee eternally. There has to be an end somewhere, at least of an issue, with the completion of the proceedings in which it was first taken up. We are confronted with a situation in which the AO initiated re-assessment proceedings in the first round on this very issue and passed the order without making any addition by duly recording in the order and accepting the contention of the assessee about having received loan from Dr. A.G. Vakundre with proper details. The re-assessment has been initiated in the second round of proceedings on the same issue, which in our opinion, is totally unfounded. The transactions of acquisition of the land and its payment by Dr. Vakundre are tagged with each other. If the land is the asset of the assessee, then naturally, the corresponding payment is his liability, irrespective of denial by Dr. Vakundre for extraneous considerations. Viewed from any angle, it is patent that the initiation of re-assessment proceedings on this score cannot be validated. We, therefore, overturn the impu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... latter was helping him in his land dealing activities. The AO issued a letter to Dr. A.G. Vakundre, who appeared in person. The AO recorded his statement u/s.131 on 24-08-2011. In response to question No.6, he submitted to have paid a sum of Rs.72.00 lakh as a consideration and Rs.3.00 lakh towards stamp duty registration and expenses totalling to Rs.75.00 lakh by cheque No.71922 (RTGS) dt. 30-06-2008 on Axis Bank, Mapusal Branch to Mr. Balkishan Sadekar towards purchase of the above property. In reply to notice u/s.142(1), the assessee submitted point-wise explanation to the query raised by the AO and submitted the details of loan of Rs.78,85,000/- from Dr. A.G. Vakundre as under : Sr.No. Amount (Rs.) Remarks 1 72,00,000 Consideration for plot of land At -Hindale, Tal-Devgad 2 2,88,000 Stamp duty 3 2,08,000 Consideration and stamp duty of the plot at Ubhadanda, Tal.- Vengurla 4 1,00,000 Received as advance for sale of land ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vanced to Shri Kamalakant Vasant Kubal for purchase of land. 3. Similar facts as mentioned above in the case of Shri Kamalakant Vasant Kubal are applicable in the instant case of Shri Sudesh Sudhakar Angchekar, who is also associated with Dr.A.G. Vakundre and have executed similar land transaction amounting to Rs.72,00,000/- at Hindale, Tal. Devgad. 2. The ACIT, Circle-2, Kolhapur vide letter No.710 dated 24-03- 2014 initiated that the aforesaid transactions do not appear to be reflected in the return of income filed by Dr.A.G. Vakundre. It is also stated that, income earned from these activities have also not been offered in the return of income. Further the payment made by Dr.A.G. Vakundre towards purchase of property is also required to be verified. As such proceedings u/s.147 of the IT Act, 1961 has been initiated in the case of his assessee, i.e. Dr.A.G. Vakundre. 4. On the basis of the above information received from ACIT, Circle-2, Kolhapur, I have reasons to believe that the investment in immovable property worth Rs.72,00,000/- made by the assessee Shri Kamalakant Vasant Kubal has remained unexplained; thus has escaped assessment within the meaning of section 147 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /JCIT/R-2/120/2014-15/452 dated 01-08-2014. The scrutiny assessment for the year 2009-10 was completed on 30-03-2015 raising a demand of Rs. 35,877/-. During the assessment proceeding the assessee furnished Confirmation with regard to the advances received from M/s. Sansudha Consultants Pvt. Ltd., other Companies for purchase of land for these Companies; necessary documentary evidence such as MOU with the Company, Bank Account Extracts of the said Advances advance given by the assessee to the land owners have also been furnished. All the transactions were routed through bank accounts as such no addition was made in the case of Dr. Vakundre with regard to the investment in land amounting to Rs.72,00,000/-. 8. On going through the above status of assessment of Dr. A.G. Vakundre, it is manifest that notice u/s.148 was issued in his case qua the investment in land amounting to Rs.72.00 lakh and the AO accepted the genuineness of this transaction without making any addition in his hands. Thus, it becomes evident that the issue, which had attained finality in the first round of the reassessment proceedings with the AO accepting the genuineness and break-up of loan of Rs. 78.85 la ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... its payment by Dr. Vakundre are tagged with each other. If the land is the asset of the assessee, then naturally, the corresponding payment is his liability, irrespective of denial by Dr. Vakundre for extraneous considerations. Viewed from any angle, it is patent that the initiation of re-assessment proceedings on this score cannot be validated. We, therefore, overturn the impugned order by quashing the second round of re-assessment proceedings. All the consequential orders passed are hereby set-aside. In view of our decision on the invalidity of the initiation of reassessment proceedings, there is no need to dispose of other grounds raised on merits. Shri Kamalakant Vasant Kubal : 11. The facts and circumstances of this appeal are mutatis mutandis similar to those of Sudesh Sudhakar Angchekar dealt with above. In this case also, the first re-assessment of the assessee was completed by the AO on 28-12-2011. A specific query was raised about the assessee having purchased some property (different from the one considered in the case of Sudesh Sudhakar Angchekar) for Rs.61,15,000/-. The assessee submitted that a sum of Rs.68.35 lakh was received from Dr.A.G.Vakundre, out of w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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