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2020 (11) TMI 826 - AT - Income TaxReopening of assessment u/s 147 - eligibility of reasons to believe - HELD THAT:- There is no infirmity in action u/s 148 of the Act wherein, there was a requisite information and the ld AO has applied his mind and found that there is reason to believe for the reopening of the assessment as according to AIR information assessee has deposited ₹ 1049000/- in his bank account with Laxmi Vilas Bank Ltd - There is no infirmity in the reopening of the assessment. Accordingly, ground No. 1 and 2 of the appeal are dismissed. Addition u/s 69 - unexplained source of cash deposit - HELD THAT:- Out of the above ₹ 2 lakhs the source of ₹ 26,000/- has been explained by the assessee whereas the balance of ₹ 174,000/- remains unexplained. In view of the above analysis, we direct the ld AO to delete the addition of ₹ 340,000/- out of the addition of ₹ 514000/- sustained by the ld CIT (A) as the source to the above deposit is explained by the assessee out of the withdrawal of cash from the same bank account which was not found to have been utilized by the assessee for any other purposes. Merely some time lag between the withdrawal and deposit without any contrary evidence that such withdrawal has been used by assessee for some other purposes, cannot go against the assessee. Ld CIT (A) has used this proposition to confirm the above addition. Accordingly, we direct ld AO to delete the addition of ₹ 340000/- out of ₹ 514000/- sustained by CIT (A). Thus, This ground of appeal of the assessee is partly allowed.
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