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2018 (10) TMI 1444 - AT - Income TaxAssessment u/s 153C - not providing the seized material to the assessee well in advance to analyze and file the return of income - Held that:- There is no mention with regard to the date of requesting the seized material and supply of the seized material by the AO. AR did not furnish the date of requisition of the copies of the seized material and the date of supply of copies of the seized material to the assessee. Having received the copies of the seized material from the AO during the assessment proceedings, at the time appeal also the assessee did not make any effort to analyse the seized material and to present his case before the CIT(A) is the assessee who has not cooperated with the department and failed to furnish the required information in spite of several notices and opportunities provided by the AO as well as the CIT(A). This ground was not raised by the assessee before the CIT(A) and during the appeal hearing, the AR did not make any argument to support the ground. Therefore, we do not find any merit in the ground raised by the assessee and this ground is dismissed. Cash deposits made in the bank account unexplained - there was no compliance from the assessee to explain the sources of cash deposits made in the bank account - assessee contended that the deposits were made out of the withdrawals - Held that:- As evident from the bank account, there are frequent cash deposits and withdrawals which required to be considered in totality of the facts but not the deposits alone. Since the assessee has assured that he would submit the entire information required for the purpose of completion of the assessment, we are of the considered opinion that in the interest of justice the issue should be remitted back to the file of the AO to arrive at the true and correct income. The assessee must submit the necessary information explaining the sources of deposits, and the application of withdrawals before the AO to consider the issue on merits. Assessment made on the basis of bank deposits instead of the seized material - assessee submitted addition made on the basis of deposits made in the bank accounts without having any seized material - Held that:- In this case, the assessee has not filed the regular returns of income. During the appeal hearing the Ld.A.R did not furnish any evidence having filed the regular returns of income by the assessee. No assessments were made u/s 143(3)/143(1) in the hands of the assessee. Thus, the bank accounts found during the course of search are not declared by the assessee and constitute the incriminating material for the purpose of initiating the proceedings u/s 153C. Accordingly, we uphold the action of the AO in initiating the proceedings u/s 153C and the resultant actions of the AO and dismiss the appeals of the assessee on this ground. - Appeal decided partly in favour of assessee.
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