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TMI Blog2016 (3) TMI 1460X X X X Extracts X X X X X X X X Extracts X X X X ..... the deposit is unaccounted income of the assessee. For this our view is that the moment any person of little bit of common sense looks at this account with the income earning employment of the assessee he will jump to same conclusion. Therefore we upheld that reopening of assessment is validly initiated. Therefore ground no 1 of the appeal is dismissed. Addition u/s 68 - As it is evident that u/s 133(6) letters have been issued by the AO to them and out of them few responded. This might have happened because of short time available during the remand proceedings and death of Shri Dinesh Prasad who was the main person collecting money from other parties. As the AO himself has stated that the assessee may not be the real owner of the sum so d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d not press ground no 3 of the appeal and therefore same is dismissed. 4. Regarding ground no 1 and 2, brief facts of the case are that the assessee is an individual. He filed his return of income for Assessment Year 2005-06 declared an income of Rs. 273220/- on 12th May 2005. Based on the information received from DCIT, Circle-Pelampur, Himachal Pradesh vide letter dated 01.05.2009 that there was huge cash deposit in the bank account No.CA/01/071372 with Corporation Bank, Vivek Vihar, New Delhi in his proprietory concern of M/s. Kumar Rajendra & Company. According to the letter it was informed that in FY 2004-05 approximately Rs. 1,07,64,950/- were deposited in this bank account in cash. The letter also contained copies of bank statement ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -. The learned Commissioner of Income-tax (Appeals) rejected the contention of the assessee that this sum was deposited in the bank account of the assessee which was received from his brother in law Shri Dinesh Prasad, who used to collect sum from different persons for making investment in equity shares of the company. It was contended by the assessee that as per arrangement between his brother in law and him the assessee will get commission @1% as entry operator. However, Shri Dinesh Prasad passed away in spite of this the assessee submitted the details of persons who used to lend cash to Mr. Dinesh Prasad and which was handed over to the assessee, appellant deposited this in his bank account and subsequent issue to cheques to various pers ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessment of Shri mann and the assessee has no linkage and there is no adverse inference in the assessment of Shri Mann as nothing comes out of the order of assessee or reasons recorded. Therefore It was submitted that merely on receipt of information by the AO without application of mind the assessment has been reopened. He argued that there is no live link between information received and reasons recorded by the assessee. b. He further submitted that in the remand report itself in Para 14 AO was of the view that from the enquiries carried out by the AO and statement recorded it is quite clear that the assessee is not a person of sufficient means who would have ploughed back unaccounted money by depositing of cash of Rs. 5,12,05,35 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Act has been initiated on the basis of information received from another AO. The information contained the specific account number, the amount deposited in those bank accounts. Further looking to the assessment records of the assessee who is merely an accountant earning meager salary. Hence it is reasonable belief the AO hold that the amount deposited in his bank account is his unaccounted income. Therefore in our view this information is very specific and we failed to understand what more information is required for reopening of the case. Consequently it cannot be said that there is no live link of the information received which is along with copies of the bank statement of the assessee. If anybody look at the bank statement of the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... deposited in various concerns. Therefore it is also required to be established that who owns those investments and who are the real beneficiaries of such investments, it can be either the investor or investee. Therefore in these circumstances, thorough examination of the transaction needs to be carried out. Further assessee has submitted list of the persons namely 96 person for Assessment Year 2005-06, 292 persons for 2006-07 and 12 persons for Assessment Year 2007-08. The list contains the name of those persons address Permanent account No and amount deposited by them. As it is evident that 133(6) letters have been issued by the AO to them and out of them few responded. This might have happened because of short time available during the re ..... X X X X Extracts X X X X X X X X Extracts X X X X
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