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2020 (12) TMI 1057 - AT - Income TaxReopening of assessment u/s 147 - unexplained bank deposits - HELD THAT:- Since, as per the records available, it is not clear on the aspect of the receipt of this amount of ₹ 5,00, 000/- into the account of the assessee, we find it just and necessary to direct the AO to verify the fact with reference to the material. We clarify that this direction does not entitle the revenue to summon or call for any details from the assessee as the revenue has already had 120 months from the date of filing of return and 43 months from the date of issue of notice u/s 148 at their disposal to come out with the details of the deposit. Our above view in respect of ₹ 5,00,000 /- leads to examination of applicability of Explanation-3 to Section 147 of the IT Act inserted by the Finance (No. 2 of 2009 ) with regard to the ground no 7 of the appeal where it was contested that addition of ₹ 2. 2 cr. made by the Assessing officer for which no satisfaction has been recorded at the time of reopening or during the reassessment proceedings. With regard to the issue whether any addition made by the AO is legally valid in the absence of a valid addition made based on the reasons recorded is examined in the context of the judgment of the Hon’ ble Jurisdictional High Court in the case of Ranbaxy Laboratories ltd. Vs CIT [2011 (6) TMI 4 - DELHI HIGH COURT] - We hold that the other addition made by the AO depends upon the view to be taken by the AO in respect of the addition of ₹ 5,00,000 /- as mentioned in the reasons. To sum up, we hereby hold that, a. The addition of ₹ 5,00,000/- as mentioned in the reasons recorded is being sent for verification owing to absence of proof of deposit in the assessee’s bank account. b. The issue of the addition of ₹ 2.20 cr. made by the AO for which reasons have not been recorded since linked to the point (a.) above will have a contemporaneous effect on the outcome of the verification by the revenue.
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