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2018 (9) TMI 1748 - AT - Income TaxReopening of assessment - requirement of issuing notice under section 142(1) - Held that:- Assessing Officer has raised queries from time to time for making assessment, however the assessee submitted only part information particularly in respect of the sale transactions. We do not find any illegality in the assessment proceedings, which is fatal for annulling the entire assessment proceedings, particularly when a copy of the reasons recorded was already provided to the assessee and all the queries in respect of the addition in dispute have been raised during the assessment proceedings. No violation of the principle of the natural Justice. Whereas we find that the assessee has played game of hide and seek and accepted the undisclosed income pointed out either by the Assessing Officer or by the CIT(A) when she found herself cornered. Assessing Officer has complied the requirement of issuing notice under section 142(1) and thus, the conditions of completing the assessment under section 144 are fulfilled. In absence of any return of income filed by the assessee in response to notice under section 148 of the Act, the Assessing Officer was justified in completing the assessment under section 144 of the Act. Addition u/s 68 - Held that:- Where such deposits are not appearing in books of accounts and, therefore, section 68 becomes inapplicable. Here the origin of investigation is the bank account, however, before the Ld. CIT(A) the assessee has submitted complete statement of accounts of the said deposits in bank account. In aforesaid facts and circumstances, the said sum are definitely credited in books of accounts and the assessee cannot be allowed to take shelter of the precedents, which are not applicable in the facts of the instant case. In the case of Ms. Mayawati (supra), the issue involved was of certain gifts received in cash, which were taxed by the AO under section 69 of the Act, and thus, the ratio of the said decision is not applicable over the facts of the instant case. In view of the aforesaid discussing, we do not find any infirmity in the action of the Ld. CIT(A) in sustaining the addition under section 68. Unexplained cash deposits - Held that:- In the instant case, the Ld. CIT(A) has properly analyzed the facts in respect of the deposits appearing in the bank account and reconciled the same with the business profit and made addition of undisclosed income for the amount which could not be reconciled with the business profit . Keeping in view the above judicial position, we are of the opinion that the addition sustained by the Ld. CIT(A) is in respect of the source of income already assessed by the Assessing Officer. In view of the aforesaid discussion, the ground No. 5 raised by the assessee is dismissed. Addition u/s 68 - sufficient cash in hand was available with the assessee at the relevant point of time - Held that:- Counsel could not point out particular amount of the advance received, which has not been considered by the Ld. CIT(A). The Ld. counsel has made a general statement and not pointed out any specific error in the finding of the Ld. CIT(A) on this issue. In absence of any specific error in the amount of cash receipts considered by the Ld. CIT(A) for explaining the cash deposits, we do not find any infirmity in the order of the Ld. CIT(A) and accordingly we uphold the same. The ground No. 6 of the appeal raised by the assessee is, accordingly dismissed.
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