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2023 (2) TMI 1290 - AT - Income TaxReopening of assessment u/s 147 - Reason to believe - HELD THAT:- As the facts and circumstances of the present case are identical to the facts of the case in the case of RMG Polyvinyl (I) Ltd. [2017 (7) TMI 371 - DELHI HIGH COURT] and Shri Omvir Singh vs. ITO [2020 (6) TMI 822 - ITAT DELHI] therefore we are inclined to hold that the AO initiating reassessment proceedings mainly on the incorrect and wrong basis that the assessee has not filed its return of income for A.Y. 2011-12 and thus the AO did not assume valid jurisdiction to initiate reassessment proceedings u/s. 147 and to pass impugned reassessment order u/s. 143(3) r.w.s. 147 - Assessee appeal allowed. Addition u/s 68 - unexplained cash deposited to the bank accounts of the assessee - HELD THAT:- When the assessee is in the business of exchange of old Torn/Soiled/Mutilated currency noted then the modus operandi of business would be the same as stated by the learned counsel of the assessee that is the assessee has to deposit old Torn/Soiled/Mutilated notes to the bank account and he is required to withdraw amounts from the bank account for the purpose of giving the same in exchange to its customer and clients. Therefore we declined to approve basis taken by the AO for making addition of entire cash deposited to the bank accounts of the assessee and ignoring the high amount of cash withdrawn by the assessee for the purpose of its business. Therefore addition made by the AO and upheld by the Ld. CIT(A) has no legs to stand. Our above noted conclusion also gets strong support from the judgement of Sona Electric Co. [1984 (2) TMI 37 - DELHI HIGH COURT] and Mrs. Deepali Sehgal [2014 (9) TMI 1073 - ITAT DELHI] and Smt. Parminder Kaur Matharoo [2022 (11) TMI 779 - ITAT DELHI] to hold that the addition made by the AO u/s 68 of the Act is not sustainable - Assessee appeal allowed.
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