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2020 (12) TMI 83 - AT - Income TaxValidity of Assessment order - void ab-initio or not - assessment u/s.144 - case was selected for scrutiny and notices u/s.143(2) and 142(1) - HELD THAT:- AO had given reasonable opportunities to the assessee for explaining the return and substantiating his claim made in the return of income with respect to expenditure. However, the assessee did not attend and avail opportunities of explaining the return before the AO - despite many opportunities, the assessee did not respond to the AO. That even before making best judgment assessment, the AO had also communicated the said intention of framing assessment u/s.144 of the Act to the assessee. Then also the assessee did not avail this final opportunity. In such scenario, we are of the considered view that the Revenue Authorities have absolutely done correct thing as per process of law enshrined in the Act. Lack of opportunity in final notice served on wife - HELD THAT:- Since even after providing several opportunities of hearing to the assessee, the assessee neither availed those opportunities and as evident from the order of the Ld. CIT(Appeal) before making the best judgment assessment, the said intention was conveyed to the assessee by the Assessing Officer still then the assessee has not bothered to appear before the Revenue Authorities. The assessee has not brought on record any evidence to show that notices have not reached at his registered address given to the Department. On the contrary, it is on record of the Department that the notices were duly served appropriately as per law and was received by the assessee. Therefore, observation of the Ld. CIT(Appeal) is upheld on this issue and Ground No.2 raised in appeal by the assessee is dismissed. Disallowance of cash deposit in IDBI Bank u/s.68 - HELD THAT:- Revenue Authorities has not brought out any definite case in this regard against the assessee nor has brought out any evidence that such deposits were from some other source of income, not disclosed by the assessee. When the Revenue is admitting the earlier withdrawals of cash by the assessee, when the Revenue is also admitting the assessee having enough cash balance, in such scenario, there cannot be any addition on this ground. It is well explained that the amount of ₹ 2,00,000/- was deposited from earlier withdrawals of the assessee. We, accordingly, set aside the order of the Ld. CIT(Appeal) and allow this ground of appeal of the assessee Disallowance of u/s.69C of expenditure claimed by us @ 10% - HELD THAT:- Assessee has failed to bring on record anything to support that the payments claimed to have actually incurred for the purpose of assessee‟s business. That there were no corroborating evidence or confirmations filed by the assessee to show that these were in relation to assessee‟s business purpose. There was also remand report called for by the Ld. CIT(Appeal) from concerned Assessing Officer and therein, it is stated that about 70% expenditures were made in cash and through self made vouchers. These were not refuted before the Ld. CIT(Appeal) by the assessee through proper evidences as evident from record. In such scenario, the disallowance being restricted to 10% of direct expenses as held by the Ld. Ld. CIT(Appeal) needs no further interference and is upheld. - Decided against assessee.
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