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2022 (4) TMI 634 - AT - Income TaxValidity of reopening of assessment u/s 147 - Unexplained cash deposit in the bank account - It was the assessee's contention before the Assessing officer as well as the Ld. CIT(A) that the source of cash deposits was the balance of cash brought forward from earlier assessment years and that the same was duly reflected in the balance sheet which had been filed by the assessee along return of income - HELD THAT:- The assessee has filed paper books for both the years under consideration and we note that for assessment year 2010-11, the assessee had filed copy of the balance sheet for the years ending 31.3.2010 and 31.3.2011. The balance sheet as at 31.03.2010 shows the closing cash balance in hand amounting to ₹ 12,61,473.32 and during this year i.e. 2011-12, the assessee had made deposits in bank account amounting to ₹ 13,40,000/-. During this year, the assessee had also made cash withdrawals of ₹ 3 lacs of which the Assessing officer had given due credit and had proceeded to add the remaining amount of ₹ 10,40,000/- only to the income of the assessee. It is not in doubt that these balance sheets were filed before the Assessing officer during the course of assessment proceedings as well as the before the Ld. CIT(A) but the same were not considered by them while deciding on the merits of the case. Apparently, the explanation given by the assessee has been rejected without assigning any reason. To our mind, if the assessee's explanation of having the opening cash in hand was to be disbelieved, there should have been cogent reasoning behind the same. Therefore, we accept the assessee's contention that as on 31.3.2010 the assessee had a closing balance of cash in hand of ₹ 12,61,473.32 which ought to have been considered for the purposes of explaining the source of cash deposits in the bank accounts. Disbelieving the assessee's contention having earned tuition income - Again it remains undisputed that the Department has accepted that the assessee had earned tuition fee in preceding assessment years, as is evident from the copies of the assessment order passed u/s. 143(3) of the Act read with section 147 of the Act for assessment year 2010-11. Not only this, the assessee's returned income was also accepted in assessment year 2012-13 also in order passed u/s. 143 read with section 147 of the Act. Therefore, in our considered opinion, the lower authorities had no reason to disbelieve the assessee's claim of having earned tuition income in this assessment year as well for the simple reason of rule of consistency Therefore, we do not concur with the findings of the authorities below on the issue of not accepting the assessee's of having received income from tuition fee. Thus, in assessment year 2011-12, on merits, we hold that the lower authorities had no justifiable reason to make the impugned additions - Decided in favour of assessee.
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