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2022 (2) TMI 1313 - HC - Income TaxRecovery notice - addition u/s 68 - petitioner submits that one of the main partners died and the Firm was left with other partners, who were wife and daughter and therefore they needed time to take over the business and practically the business has come to a stand still and the Firm continues only for the purpose of recovery of dues - HELD THAT:- Taking note of the Assessment Order having been passed while observing that assessee has not filed any reply or response to the notice under Section 142(1) of the Income Tax Act and that the Assessing Officer in terms of Section 68 has treated the deposit as unexplained and treated it as deemed income of the assessee and had directed to add the same to the income of the assessee for the Assessment Year 2018-2019, it would meet the interests of justice to provide another opportunity to the petitioner to explain and file his objections regarding the proposed addition Accordingly, taking note of the circumstances referred to above detailing the bona fide lapse on the part of the petitioner, the Assessment Order at Annexure-G1 dated 26.04.2021 is set aside and consequently, the recovery notice at Annexure-G2 dated 08.11.2021 is set aside. The matter is relegated to the first respondent to resume the proceedings from the stage of reply to the show cause notice dated 16.03.2021.
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