Point of Law: Taxation - Escapement of assessment - Assessee had disclosed all material facts truly and fully for assessment of income for year under consideration. In other words there was no failure to disclose primary facts necessary for assessment on part of assessee.

ORDER :

1. By filing this writ application, under Article 226 of the Constitution of India, the writ applicant seeks to challenge the impugned notice dated 26.02.2019 issued under Section 148 of the Income Tax Act, 1961 seeking to reopen the applicant’s assessment for the A.Y. 2013-14.

2. The brief facts can be summarized as under:

The assessee filed his return of income for A.Y. 2013-14 on 29.01.2014 declaring total income at Rs. 24,52,260/- whereby, the assessee had claimed the exempt income Rs. 15,00,000/- received as a gift from his brother-in-law. The return was processed under Section 143(1) of the Act on 10.07.2014 and thereafter, the case was selected for scrutiny assessment. During the scrutiny proceedings, the details called for were placed on record. The assessing officer had asked the details regarding receipt of gift of Rs. 15,00,000/-. The assessee vide letter dated 11.01.2016 furnished various details including his explanation with regard to gift received from his brother-in-law amounting to Rs. 15,00,000/- and in support thereof, the copy of declaration of gift made by Mr. B.U. Patel (brother-in-law of the assessee) was also submitted. The assessment order under Section 143(3) of the Act was passed on 29.02.2016 without any further addition and determined the income at Rs. 24,52,260/- as shown in the return of income. The assessing officer did not disallow the amount of Rs. 15,00,000/- duly received as a gift by the assessee.

Thereafter, the Assessing office reopened the assessment for the A.Y. 2013-14 by issuing impugned notice dated 26.02.2019 under Section 148 of the Act. Pursuant to the impugned notice, the assessee filed his return of income and requested to provide the copy of the reasons recorded for reopening of the assessment.

3. The assessing officer vide communication dated 22.07.2019 furnished the reasons recorded to the assessee. The assessee filed his objections vide letter dated 13.08.2019 which came to be disposed of by the revenue vide order dated 23.08.2019. The reasons recorded for reopening of the reassessment provided by the revenue reads thus:

“1. Brief details of the Assessee: The assessee has filed his return of income tax in respect of AY 2013-14 on 2001/2014 declaring his total income at Rs. 24,52,260/-. The return was processed u/s 143(1) of the act on 10.07.2014, The case was selected through CASS (Limited) for verification of large investment in property as compared to total Income. The assessment u/s. 143(3) was finalized on 19.02.2016 assessing same income as return of Income.

2. Brief details of information collected/received by the AO: Revenue audit was carried out in this case and the Audit party vide letter No ITRA/ITB/007/2017-18 dated 5.1.2018 raised an objection that perusal of the Capital account submitted by assessee during the scrutiny, it observed that assessee had credited an amount of Rs. 15,00,000/- as gift received from Bhailal U. Patel (Brother-in-law) on 12.04.2012. To prove the same a declaration of gift on a 100 Rs. Stamp paper and a copy of Bank statement of Shri Bhailal U Patel was kept on record, It was observed from the Bank statement Kept with assessment record in respect of assessee Brother-in-law that assessee had first deposited an amount of Rs. 15,00,000 on 12.04.2012 and same was withdrawn vide cheque No. 41270 dated 12/04/2012 i.e. same amount on the same day. Thus it is dear that assessee has received back his own amount via cheque which has resulted into under assessment of Rs. 15,00,000/- which has resulted in escapement of income.

3. Analysis of information collected/received: From the analysis of the information, it is seen from the capital account that assessee had credited an amount of Rs. 15,00,000 as gift received from Bhailal U. Patel (Brother-in-law) on 12.04.2012 and as supporting evidence declaration of gift on a 100 Rs. Stamp paper and a copy of Bank statement of Shri Bhailal U Patel was kept on record. It was observed from the Bank statement ke