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2019 (2) TMI 1708 - AT - Income TaxReopening of assessment - unexplained cash deposit - sufficient reasons for forming ‘reason to believe’ that income has escaped assessment - HELD THAT:- On perusal of the reasons, it is clear that with regard to the cash deposit in F.Y.2007-08 relevant to assessment year 2008-09, the letter of verification of financial transaction was issued on 26/12/2014 to verify the genuineness of the transaction but the assessee has not responded to the same. On this aspect, the Ld. AR stated that there was change of address and the assessee did not receive any notice or letter as such and therefore, was not able to respond. Re-enquired whether the change of address was communicated by the assessee to the Department, the Ld. AR submitted that change of address was not communicated to the Department by the assessee. Furthermore, coming back to the reasons recorded, the assessee was required to furnish details of sources of the financial transaction along with copies of documents in support of his claim. This was also not done by the assessee. Further, in the reasons recorded, it is stated on verification of AST data, that the assessee has not furnished his return of income for the assessment year 2008-09. The assessee has not offered the amount of ₹ 16.04 Lakh for taxation. In view of above, the Assessing Officer has reason to believe the amount of ₹ 16,04,400/- escaped the assessment within the meaning of section 147 of the Act. So far as the grounds on merits are concerned, the assessee contends that the entire receipts/cash deposits are considered as income, without considering the income/profit embedded in the receipts/cash deposits. The fact that the assessee has carried two businesses in that year has not been considered by the CIT(Appeals). CIT(Appeals)/Ld. AO has not brought any material on record to justify that the above receipts are net income of the assessee. That for verification of this aspect, it was prayed by the Ld. AR of the assessee that the matter may be restored to the file of the Ld. CIT(Appeals). We are of the considered view that the grounds on merits needs to be adjudicated after detailed factual verification through a speaking order by the Ld. CIT(Appeals). - Appeal of the assessee is partly allowed for statistical purposes.
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