ORDER

Per Dr.M. L. Meena, A. M.:

Both these appeals, filed by the respective assessee, call into question correctness of order dated 27.03.2018passed by the learned CIT(A)-I, Agra in the matter of assessments framed vide orders dated 31.03.2016 under section 147/144 of the Income Tax Act, 1961 for Assessment Year 2008-09 passed by the ITO 1(3), Agra.

2. Since, ITA No.393/Agra/2018 and ITA No. 394/Agra/2018 are for same A.Y: 2008-09 in the cases of mother (Smt. PremwatiSuman) and son (Shri. RanjeetSuman) and assessee’s therein had raised common grounds in appeal regarding the validity of reasons recorded, which too are recorded by the same Assessing officer in respect of same item of escapement of income in both the cases with the only variation in name and amount therefore, in order to have consistency in our decision both the appeals are heard together.

3. For brief facts we take ITA No. 393/Ag/2018 as a lead case in the case of Smt. PremwatiSuman that an information was received that assessee had purchased a property for Rs.50,00,000/- alongwith her son ShriRanjeetSuman on 27.12.2007 and also paid Rs.7,53,700/-. Subsequently, notice under section 148 was issued on 26.03.2015 after recording reasons. In response to the notice no return of income was filed and evidences filed to explain the sources of availability of funds did not favour with the view held by the learned Assessing officer who framed assessment vide order dated 31.03.2016 passed under section 144/147 of the Act determining total income at Rs. 22,13,439/-.

4. Before the learnedCIT(A) assessee has raised grounds regarding validity of re-opening and also submitted that the addition on merits has wrongly been made. However, the learnedCIT(A) rejected the appeal both on legal ground as well on merits and confirmed the assessment order as such.

5. The learned CIT(A) has sustained re-opening on the ground that before issuing notice under section 148 due enquiries were made from the assessee by the learned Additional CIT, Range-1 and by the ITO - 1(3) who issued notices to the assessee and replies furnished in response thereto were found unsatisfactory. Thus, after considering the replies by the assessee notice under section 148 was issued. He also rejected the contention of the assessee that investment in property cannot be compared with cash deposit and therefore, cases relied upon by the assessee were found to be not applicable. He thus, sustained re- opening confirmed the addition.

6. Being aggrieved, assessee has come in appeal raising the following grounds:

1. BECAUSE, upon due consideration of facts and in the overall circumstances of the case ‘appellant’ denies its liability to be assessed in terms of Notice dated 26.03.2015 said to be issued under section 148 of the ‘Act’.

2. BECAUSE, the purported ’Reasons’ are no ‘Reasons’ in the eyes of Law. The so called ‘Reasons’ do not show any ‘intelligible nexus’ to show that ‘Investment’ as made by the assessee represents her ‘Income’ which too is liable for Income Tax and had escaped Assessment warranting recourse to Notice under section 148 of the Act.

3. BEACUSE, alleged non-compliance, partial compliance or even unsatisfactory compliance to Letter dated 19.01.2015 as was issued by the Ld Addl. CIT, and 18.03.2015 as was issued by the ITO 1(3), Agra may be a ground only for ‘reasons to suspect’ for alleged escapement of income but does not give any valid foundation for reaching to ‘reasons to believe’ and thereafter arriving at the ‘satisfaction’ for escapement’ of Income warranting recourse to Notice under section 148 of the Act.

4. BECAUSE, while sustaining the validity of Notice Ld. CIT(A) legally erred in referring to the Letter dated 19.01.2015 and 18.03.2015, which Letters do not find mention in the ‘Reasons Recorded’ and therefore, cannot be referred or relied in order to improve the ‘Reasons Recorded’ which is lacking in material terms of showing application of mind on part of the AO recording the reasons.

5. BECAUSE,