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2021 (7) TMI 45 - AT - Income TaxReopening of assessment u/s 147 - Income from undisclosed sources - no explanation to source of cash deposit and the source of property purchased - HELD THAT:- The only person from whom the Assessing Officer could have made enquiry was the assessee herself and the Assessing Officer can make enquiry from the assessee by issuing notice and asking her to explain the source and this is what the Assessing Officer has done. The Assessing Officer has not made additions solely by issuing notice u/s. 148 of the Act, but after giving several opportunities to the assessee to explain the source of her investment. We are of the considered view that there is no error or infirmity in issuing notice u/s. 148 of the Act and initiating reassessment proceedings. We, accordingly, confirm the findings of the ld. CIT(A). To this extent, reopening of the assessment is upheld. Merits of the addition, though the first appellate authority has accepted the additional evidences u/r. 46A of the Rules, but has not examined the explanation of the assessee that the source of cash deposits are duly reflected in her books of account regularly maintained by her. We are of the considered opinion that since the assessee has sought to explain the source of cash deposit from her books of account, the entries need to be examined. Therefore, in the interest of justice and fair play, we restore this issue to the file of the Assessing Officer.
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