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2020 (9) TMI 958 - AT - Income TaxReopening of assessment u/s 147 - non-supply of reasons recorded for issuance of notice u/s 148 - HELD THAT:- There is nothing on record and which has been brought to our notice that in the entire assessment proceedings, the assessee objected to the issuance of notice u/s 148 and has sought copy of the reasons so recorded for the reopening the assessment proceedings. We find that there is no prejudice which is caused to the assessee in terms of denial of any opportunity to the assessee to object to the reassessment proceedings by non-supply of the reasons so recorded by the AO where the same were never asked for by the assessee at first place. There is thus no violation of the directives as laid down in the case of GKN Driveshaft [2002 (11) TMI 7 - SUPREME COURT] wherein it was held that recorded reasons must be furnished to the assessee when the assessee sought for the said reasons. In the instant case, it is an admitted position that the assessee for the first time applied for the copy of the reasons on 14.11.2019 i.e. after passing of appellate order by ld. CIT(A), Jaipur and the same was provided by the AO to her on 18.12.2019 and therefore, it is crystal clear on facts that the assessee never asked for the copy of the reasons during the entire assessment and appellate proceedings, and therefore, there was no obligation as well as occasion for the AO to supply copy of the reasons to the assessee. In the result, the ground so taken by the assessee is hereby dismissed. Action of the JCIT, Range-04, Jaipur in giving the approval and sanction before issuance of notice u/s 148 - HELD THAT:- Review of the reasons so recorded by the AO and perusal of the assessment and other records so submitted by the AO, the JCIT has recorded his satisfaction and endorsed the satisfaction so recorded by the AO and held that it is a fit case for issuance of notice u/s 148. JCIT has gone through the reasoning and the satisfaction so recorded by the AO and finding the same to be in conformity with the provisions of law and the facts and circumstances of the case, has accorded his sanction. We therefore find that it is not a case where the approval has been granted mechanically or without application of mind, rather he has gone through the AO’s proposal, his reasoning so recorded in the proposal, the assessment and other records and finding the reasons so recorded to be in conformity with the assessment and other records has accorded his approval. Cash in hand unexplained - HELD THAT:- Where the assessee is working out the availability of cash at the start and close of the financial year, such availability is of physical cash in hand and not the cash accrual from business which is not yet realized. Therefore, as far as entries pertaining to cash accruals in respective financial years are concerned, the same needs to be excluded as the effect of the same would be automatically taken in subsequent bank/cash deposits. Subject to such exclusion, we find that the cash summary for the last four years provides a reasonable basis for arriving at the opening cash in hand at the start of the financial year and the explanation of the assessee to that extent therefore found is satisfactory. The matter is accordingly set-aside to the file of the AO for the limited purpose of determination of opening cash in hand after exclusion of entries in respect of cash accruals in the respective financial years and the AO is hereby directed to grant relief to the assessee to the extent of opening cash in hand so worked out by him at the start of the impugned financial year. In the result, the ground is disposed off in light of aforesaid directions.
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