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2017 (8) TMI 1131 - AT - Income TaxReopening of assessment u/s 147 - assessment of the peak deposits in bank account - reasons to believe - Held that:- In this case there is no change in opinion of the Assessing Officer as the matter was never investigated or adjudicated or information on the issue was called or examined by the Assessing Officer. It may be mentioned here that as mentioned by the AO, the Appellant had been issued a letter for verification of the deposits which was however not responded to, therefore the Appellant’s contention that the AO did not verify the deposits before issuing the notice also u/s. 147 cannot be accepted. Therefore, relying on the various case laws as discussed above and facts and circumstances, the issuance of notice u/s. 148 was rightly held to be valid by the Ld. CIT(A), which does not need any interference on my part, hence, uphold the order of the Ld. CIT(A) on the issue in dispute and reject the ground of appeal in dispute raised by the assessee. Addition on cash deposit in saving bank account - While the contention of the Assessee that she was a handicapped widow with no source of income has been considered, however she has been unable to explain the source of cash deposits in her account or provide evidence in the form of confirmations of relatives or persons who have claimed to have given her such amounts for her son’s wedding etc. Therefore in the absence of any evidence or the above explanation being substantiated by even corroborative evidence cannot be accepted. It may be mentioned that since the cash credits are there in her bank account, the onus is on the Assessee to prove the source of the same, Kale Khan Mohd Hanif vs CIT(1963 (2) TMI 33 - SUPREME Court). It is immaterial that she did not have any business activities or known source of income, cash deposits in bank have to be explained by the assessee otherwise they can be added U/S 69 or 66B. AO has already taken a reasonable approach of taking the peak balance of the deposits in her account and benefit of telescoping i.e withdrawals for the same has already been given. Accordingly Ld. CIT(A) has rightly held that the addition made by the AO was justified and the same was confirmed - Decided against assessee.
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