The Tax Publishers2021 TaxPub(DT) 0108 (All-Trib)

INCOME TAX ACT, 1961

Section 148

Since AO had not supplied the reasons recorded for reopening of the assessment to the assessee and AO had made the addition on account of unexplained investment by estimating Rs. 3 lacs, out of 6 lacs introduced by each assessee, however, only in case of assessee, AO made the addition of full amount of Rs. 6 lacs towards unexplained investment for introduction of the capital in the partnership firm, therefore, matter was remanded back to AO with direction to supply the reasons recorded for reopening of the assessment to the assessee.

Reassessment - AO reopened assessment on ground that assessee-partners have introduced capital - Reasons recorded for reopening of assessment not supplied to assessee -

AO had issued notice under section 148 based on the information that assessee had introduced capital in each case in partnership firm. While completing the assessment, AO made addition on account of unexplained investment in case of assessee and each in case of other four partners. Assessee challenged the addition made by AO before CIT(A) but could not succeed. Held: During the assessment proceedings, AO had accepted the facts that the amount was actually the opening balance of capital of the partners as on 01-04-2008 which includes interest on capital. Since AO had not supplied the reasons recorded for reopening of the assessment to assessee therefore, the objections, if any, to be raised by assessee remained undecided. Further AO had made the addition on account of unexplained investment by estimating Rs. 3 lacs out of 6 lacs introduced by each assessee. Only in case of assessee, AO made the addition of full amount of Rs. 6 lacs towards the unexplained investment for introduction of the capital in the partnership firm. Therefore, matter was remanded back to AO with the direction to supply the reasons recorded for reopening of the assessment to the assessee.

REFERRED :

FAVOUR : Matter remanded

A.Y. : 2007-08



IN THE ITAT, ALLAHABAD BENCH

SUBSCRIBE TaxPublishers.inSUBSCRIBE FOR FULL CONTENT