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2024 (1) TMI 262 - AT - Income TaxValidity of reopening of assessment - no valid service of the notice u/s 148 - HELD THAT:- We find that the ld CIT(A) was justified in rejecting the claims so made by of the assessee by way of a detailed discussion in the light of the judicial pronouncements cited therein. Finding no merit in this ground of appeal, therefore, this Ground No. 1 taken by the assessee is rejected. Cash credit found in the bank account which remained unexplained u/s 68 - It is an admitted fact that the assessee had been getting salary from RJ. He was aged 34 years at that relevant time and therefore the saving of a meager Rs 2,50,000/- is not beyond the pre-ponderance of human probability so as to be disbelieved. Otherwise also the Id. CIT(A) has not completely rejected the contention but estimated the same at Rs. 50,000/- but without any basis. In these circumstances, we find no justification in rejecting the contention of availability of opening cash in and of Rs. 2,50,000/- as claimed and the same is also allowed. The provisions of s. 68 & 69 use the word may indicating discretion conferred upon the AO by the statute, who is supposed to use such discretion judiciously and is not obliged always to make an addition. In view of the above discussion and in absence of any contrary evidence brought on record by the Revenue, we do not find any justification in making the addition considered u/s. 69 of the Act by the Id. CIT(A) and the same is directed to be deleted. The Ground No. 2 taken by the assessee is allowed. Appeal of the assessee is partly allowed.
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