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2022 (6) TMI 886 - AT - Income TaxReopening of assessment u/s 147 - Eligibility of reasons to believe - HELD THAT:- There is no dispute with regard to the fact that the Assessing officer was in possession of information regarding deposit of cash into the bank account of the assessee. It is also undisputed fact that the explanation regarding such cash deposit was not furnished to the Assessing Officer by the assessee prior to reopening of the assessment. Therefore, under these facts we of the considered view that there was reason to form belief regarding escapement of income from assessment. Hence, no reason to quash the assessment as prayed by the assessee. Ground nos. 1 & 2 of the assessee’s appeal are rejected. Addition u/s 69A - Unexplained cash deposits - HELD THAT:- CIT(Appeals) has failed to advert to the explanation offered by the assessee regarding the source of cash deposit. The learned CIT(Appeals) being the first appellate authority ought to have considered the submissions of the assessee regarding source of cash deposit. Before me the assessee has filed bank statement. There from, it is clear that there were cash withdrawals as well as cash deposits. Before the assessing authority the assessee has categorically stated that he had withdrawn cash of Rs. 8,25,900/- and Rs. 2,00,000/- was cash receipt during the year under consideration. Further the assessee has also claimed cash in hand from past savings of Rs. 2,50,000/-. Both the authorities have failed to consider the fact and in a cryptic manner sustained the addition which is not permissible under the law. It cannot be presumed that there was no opening cash balance looking to the fact that the assessee has been earning income for the past many years. Further, the assessee has also demonstrated that there were cash withdrawals from the bank account. Thus addition made by the Assessing Officer is unjustified, hence the same is deleted. Ground of assessee allowed. Addition being unexplained expenditure made u/s 69C - CIT(Appeals) has failed to consider the submissions of the assessee. Assessee has given confirmation as well as bank statement relating to wife of the assessee. Therefore, the authorities below ought to have considered the submissions and evidences filed by the assessee. Non consideration of the same has resulted into miscarriage of justice. Therefore, considering the material available on record, hereby direct the Assessing Officer to delete the addition. Ground of assessee are allowed.
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