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2023 (4) TMI 469 - AT - Income TaxReopening of assessment u/s 147 - unexplained cash deposits - HELD THAT:- It is a settled position of law that the quality of the “reasons to believe” cannot be assailed by an assessee. As the “reasons to believe” recorded by the A.O for initiating proceedings u/s.147 clearly reveals a bonafide belief that was arrived at by him on the basis of the material available before him that the income of the assessee chargeable to tax of Rs.10.70 lac had escaped assessment, therefore, the claim of the Ld. AR therein alleging that the “reasons to believe” are not as per the mandate of law do not merit acceptance. Thus Ground of appeal raised by the assessee are dismissed. Cash deposits in bank account - Claim of the Ld. AR that the amount of cash deposits of Rs.10.70 lac (supra) were sourced out of the assessee’s trading turnover, the income corresponding to which had been disclosed u/s.44AD of the Act, would require necessary verification, therefore, the matter requires to be revisited by the A.O. Thus we restore the matter to the file of the A.O who shall verify the maintainability of the aforesaid claim of the assessee by calling for the supporting documentary evidences, i.e., purchase/sales bills which would substantiate the assessee’s claim that the cash deposits in question were sourced out of the turnover of his aforesaid trade. Ground allowed for statistical purposes.
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