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2022 (6) TMI 142 - AT - Income TaxReopening of assessment u/s 147 - validity of re-assessment proceedings - Reopening merely on the basis of AIR information of cash deposit - onus to prove source of bank deposits - HELD THAT:- Similarly, the Chandigarh Bench of the ITAT in the case of ACIT Vs. Kisco Castings Pvt Ltd [2012 (10) TMI 314 - ITAT, CHANDIGARH] has held that where the information is factual and not false and the same has merely been communicated to AO he would be within his statutory right to invoke the provisions of section 147 read with 148 of the Act. The Coordinate Bench of the Tribunal went on to hold that the information being factually correct and the assessee failing to respond to the proceedings under the Act, the AO had rightly assumed jurisdiction u/s 147 read with section 148 of the Act. We also note that the Ld. CIT(A) has also cited and relied on the judicial precedents which we have quoted in the above mentioned paragraphs and we are in complete agreement with the reliance so placed by the CIT(A). Therefore, on an overall facts of the case, we uphold the action of the CIT(A) in upholding the initiation of re-assessment proceedings. Accordingly, ground No.1 of the assessee’s appeals stands dismissed. Cash deposits - We would be inclined to dismiss the assessee’s appeal on the merits of the case also. However, we also note that the assessee is an Army Veteran who retired from the Army in 1984. As per his own admission, he had income only from agricultural activity as well as from pension. We also note that in the paper book which has been filed by the assessee, the assessee has filed copy of letters as obtained by commission agent that assessee had received an amount of Rs. 50,00,000/- during the year from sale of agricultural receipts. The assessee has also filed affidavit on his own behalf as well as of Shri Sukhjinder Singh, Numberdar, wherein, it has been stated that the actual value of the land sold by the assessee was Rs. 70,00,000/-. Although, these evidences were filed as additional evidences before the Ld. CIT(A), the Ld. CIT(A) did not accept them as there was no further corroborative evidence in support of the same. However, ignoring the past conduct of the assessee and on the peculiar facts of this case, duly noting that the assessee is a retired Army veteran, we would like to afford one more opportunity to him to explain the source of deposits before the Ld. First Appellate Authority and to come out with clean hand once of all. Therefore, in the interest of substantial justice, we restore this appeal to the file of the CIT(A) to be decided on merits of the addition after affording due opportunity to assessee to present its case. We also direct the assessee to submit all documentary evidences and submissions which the assessee wishes to rely upon in support of its claim without any delay and whenever the Ld. CIT(A) directs him to do so, failing which, the Ld. First Appellate Authority shall be at liberty to proceed ex-parte qua the assessee and decide the case on merits in accordance with law. Appeal of the assessee stands allowed partly for statistical purposes.
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