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2019 (9) TMI 379 - ITAT PUNE - Income Tax
Head Note / Extract:
No notice u/s.143(2) issued within the stipulated period of six months before completing the assessment u/s.153A r.w.s. 143(3) - HELD THAT:- As the first notice u/s 143(2) of the Act was, in fact, issued within the stipulated period and further that the ld. AR also evinced interest in keeping the issue alive to be taken up before the higher forums rather than extensively arguing before the Tribunal, we decide this issue against the assessee without going further deep into it. Denial of natural justice - no proper opportunity by the CIT(A) - whether assessee was prevented by reasonable cause from appearing before the ld. CIT(A) - HELD THAT:- Assessee was prevented by reasonable cause from appearing before the ld. CIT(A) as his father was not well and the fact that the AO could not properly appreciate the evidence because of limitation period setting in, both the sides fairly agreed that it would be in the interest of justice if the impugned orders are setaside and the matter is restored to the file of AO - assessee deserves to be given one more chance to present his case before the AO. We order accordingly. Setting aside the impugned orders, we direct the AO to frame the assessments for the years under consideration afresh as per law after allowing reasonable opportunity of hearing to the assessee. Addition on account of cash deposited in the bank account - HELD THAT:- AO made the addition simply by considering the amounts of cash deposits on different dates in the bank account. Addition on account of cash deposits can be made only if the source of the deposits remains unexplained. If, on the other hand, the cash deposits in the bank are from the regular books of account maintained by the assessee, then such transactions cannot be said to be unexplained. AR has taken the argument that the said bank account is part of the assessee’s regular books of account which was reflected in the balance sheet prior to the date of search. Remit the matter to the file of AO for examining if all the transactions, for which the addition has been made, were reflected in the assessee’s regular books of account maintained prior to the date of search. In case such entries find their place in the regular books of account maintained prior to the date of search, then obviously no addition can be made. In the otherwise scenario, the AO will consider the issue afresh as per law. Penalty u/s.271B - HELD THAT:- Quantum of penalty in these appeals is dependent upon the gross receipts in the quantum assessment, which issue we have restored above for fresh adjudication. Consequently, the impugned orders are set aside and the penalty matters are also sent back to the AO for considering the amount of gross receipts to be finally includible in the fresh determination of income of the assessee and then ascertaining the correct amount of penalty leviable, if any.