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2019 (4) TMI 1303 - AT - Income TaxReopening of assessment u/s 147 - Cash deposition in his saving bank account - it is a case where return of income has not been filed by the assessee and pursuant to notice u/s 148, he has filed his return of income - HELD THAT:- Prior to such notice u/s 148, there is no past history of the assessee where he has filed any return of income wherein he has disclosed the savings bank account. For the first time, the matter was opened for the reason that there are cash deposits in his saving bank account which have escaped taxation. There is sufficient material in possession of the Assessing officer in form of cash deposits in his savings bank account and the factum of such cash deposits and the bank account belonging to the assessee has not been disputed before us. It is also a fact that the assessee has not filed his return of income for the year under consideration and such bank account thus has not been disclosed to the Revenue authorities. Therefore, there is a sufficient nexus between the material and formation of belief that income has escaped taxation. The argument of the ld AR that the whole of deposits cannot be regarded as income and therefore the assumption of jurisdiction is vitiated under law is not correct. To our mind, so long as there is an element of income which has escaped taxation and which exceeds the maximum amount which is not chargeable to tax, the same is sufficient enough to uphold the jurisdiction so invoked by the AO u/s 147 of the Act. Addition treating cash deposits in his saving bank account as unexplained and taxable u/s 69 - HELD THAT:- We find that out of deposits of ₹ 23,45,000, deposits to the extent of ₹ 11 lacs has been found explained as made out of withdrawals in the month of March 2008. Regarding the remaining amount found deposited, we find that the Revenue has accepted the turnover of the assessee from his business of supply of building material to the tune of ₹ 26,04,540, therefore, the source of deposits to the extent of ₹ 12,45,000 found deposited in the bank account can reasonably be held from such business and thus stand duly explained. Regarding the cheque withdrawals/payments made by the assessee to the tune of ₹ 14,46,384, we find that there is an equivalent amount of cheque deposits to the tune of ₹ 14,60,241 in the bank account which again reasonably explain such cheque payments as made out of cheque deposits. In the result, we hereby delete the addition to the extent of ₹ 12,45,000 so sustained by the ld CIT(A). In the result, the ground of appeal is allowed.
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