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2021 (3) TMI 840 - HC - Income TaxReopening of assessment u/s 147 - unexplained cash transactions of withdrawal and deposit from the bank accounts were duly recorded in bank accounts and also reflected in the audited annual account - whether the revenue is justified in reopening the assessment beyond the period of 4 years under Section 147? - HELD THAT:- We are of the view that after receiving the information from the NMS the Assessing Officer has verified the documents and explanation offered by the assessee and was not agree with the explanation and based on the outcome of the verification, drew the inference that the transactions of cash deposit was not shown in the return of income for the year under consideration and noted that the true facts of transactions having not been disclosed by the assessee and income has escaped assessment. As examined the copy of bank statements of this writ application. The assessee has not produced the copy of cash books for the years 2010-11 and 2011-12. We found some discrepancies in the bank statements with regard to opening balance and withdrawals of the cash amount. The explanation of the assessee before the Assessing Officer indicates that the assessee had not explain the transactions of cash withdrawal and deposits in a precise manner. In other words, he should have disclose and point out the entry wise explanation before the revenue authority, enable them to draw necessary inference with regard to genuineness of the transactions. We are of the view that the information received by the system was specific and clear and after verification of the material evidence produced by the assessee the Assessing Officer disclosed his mind that the assessee failed to explain the source of cash deposit and has reason to believe that the income has escaped assessment. Therefore, it cannot be said that the Assessing officer has not applied his mind and there was no satisfaction by his own with regard to escapement of income. As specifically stated that although it is the case of the assessee that the cash deposit was from the opening cash balance, yet upon verification of the submission filed by the assessee, the Assessing Officer noticed that there was no supporting evidence as regards the source of income. In the reasons, it has been specifically stated that the correct income should have been disclosed while filing of the return of the income. Thus, in our opinion, this is not a case, in which, the Assessing Officer could be said to have not been considered the explanation offered by the assessee in response to the notice issued under Section-133( 6) of the Act while recording the reasons for reopening. The order of this Court in Swati Malove Divetia [2018 (9) TMI 804 - GUJARAT HIGH COURT] is in the facts of that particular case. In view of the discussions made hereinabove, we hold that the Assessing Officer is justified in reopening of the assessment of the assessee and it cannot be said that the impugned notice is without jurisdiction and bad in law.
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