KAILASH KANHAIYALAL GIDWANI,,MUMBAI vs. ASSISTANT COMMISSIONER OF INCOME-TAX, CIRCLE - 2, , SANGLI

The instant batch of eleven cases pertains to five assessees herein i.e. S/Shri Amit Kanhaiyalal Gidwani, Kailash Kanhaiyalal Gidwani (self) as well as legal heir of Kanhaiyalal V. Gidwani and Smt. Devi K. Gidwani and Ms. Meghana Kailash Gidwani. Relevant details thereof; appeal wise, read as under :- Proceeding Order appealed against Sr. AY ITA No. Appellant under No Section 2006-07 1790/PUN/2019 CIT(A)-1, Kolhapur Amit 1-3 2009-10 1791/PUN/2019 order dated 28.08.2019 143(3) Kanhaiyalal 2010-11 1792/PUN/2019 Case No.SLI/211/2013- r.ws. 147 Gidwani 14, SLI/214/2013-14 & SLI/215/2013-14 4-5 2005-06 1793/PUN/2019 CIT(A)-1, Kolhapur 143(3) Kailash 2007-08 1795/PUN/2019 order dated 28.08.2019 r.ws. 147 Kanhaiyalal Case No.SLI/239/13-14 Gidwani & SLI/240/13-14 5-9 2005-06 1796/PUN/2019 CIT(A)-1, Kolhapur 143(3) Kailash 2007-08 1797/PUN/2019 r.ws. 147 order dated 28.08.2019 Kanhaiyalal 2008-09 1798/PUN/2019 Case No.SLI/225/13- Gidwani, L/h of 2010-11 1799/PUN/2019 14, SLI/224/13-14 Late Kanhaiyalal V. Gidwani 3 to 1793/PUN/2019 ITA Nos.1795 to 1799/PUN/2019 ITA Nos.1801 & 1804/PUN/2019 10 2007-08 1801/PUN/2019 CIT(A)-1, Kolhapur 143(3) Kailash order dated 28.08.2019 r.ws. 147 Kanhaiyalal Case No.SLI/246/13-14 Gidwani, L/h of Late Devi K. Gidwani 11 2007-08 1804/PUN/2019 CIT(A)-1, Kolhapur 143(3) Meghana Kailash order dated 28.08.2019 r.ws. 147 Gidwani Case No.KOP/207/13- 14 Heard all assessees as well as the department through S/Shri Sunil Ganoo, AR and Arvind Desai, DR.

It emerges during the course of hearing that all these assessees challenge correctness of the Assessing Officer’s reopening action itself involving identical reasons recorded. Learned counsel invited my attention to the Assessing Officer’s reopening reasons recorded in ITA No.1790/PUN/2019 herein as follows :- “According to information gathered from informed sources, local enquiries and media reports, it has come to be known that Shri Kanhaiyalal Gidwani, owns three flats, one in his name and two in the names of his two sons - Kailash and Amit in the Adarsha Housing Society. Again, one flat is learned to be booked in the name of Shri Gajanan S. Koli, where apparently it is believed that Shri Sunil K. Gidwani, son of Kanhiyalal Gidwani, has lent finance to purchase the same. All payments for the same were apparently made through Gidwani Family's various bank accounts in which apparently cash amounts were deposited and the same were transferred into the accounts of Gidwani's wife, son and daughter-in-law in HDFC Bank at Worli. Thereafter the said amounts were apparently transferred into the account of M/s Jay Maharashtra CPL, HFDC Bank, Worli, in which Gidwani's sons are directors for making payments towards cost of the flats. Shri Amit Kanhiyalal Gidwani has been allotted flat in Adarsha CHS. He has paid an amount of Rs.56,08,878/- towards the above flat between the period Feb. 2003, to July, 2010., 2. During the year under consideration, he has invested Rs.8,53,841/- out of his own funds. Source of this investment are said to be as deposits/ unsecured loans from family members. The genuineness of these loans are not proved. Therefore, in view of the above, I have