TMI Blog2002 (11) TMI 782X X X X Extracts X X X X X X X X Extracts X X X X ..... (1) of the Income-tax Act, 1961 (hereinafter referred to as the Act) which was later re-opened under section 147. The reasons recorded by the Assessing Officer under sub-section (2) of section 148 of the Act for reopening the assessment are as under :- 16-9-1988 : Information has been recd. from the I.T.O. Distt. 1(4), Patiala, vide his office letter No. 13126 dated 26/27 Nov., 1987 that Search and Seizure Operation was conducted on the business as well as residential premises of the firm M/s. Madan Lal Raghubir Chand, Mandi Gobindgarh. My assessee M/s. M.P. Iron Traders, Balachaur, had certain dealings outside the books of account with the Mandi Govindgarh party. The I.T.O., Patiala also has mentioned in his letter the sales made to M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sh credit entries made in its books of account. Since the assessee could not produce the persons in whose names the cash credit entries were made nor could it produce any other substantial material to show that those entries were genuine, the Assessing Officer treated the entire amount of cash credit entries as income of the assessee from undisclosed sources and included the same in the taxable income. Feeling aggrieved by the order of the Assessing Officer, the assessee filed an appeal before CIT(A) who held that the assessee was never confronted with the details of the purchases allegedly made by it outside the books of account. He accordingly set aside the additions made by the Assessing Officer in this regard. As regards the cash credit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the Department has filed the present appeal. 3. We have heard counsel for the parties. There is no gainsaying the fact that the cash credit entries stood entered in the books of account of the assessee when the Assessing Officer completed the assessment under section 143(1) of the Act without disputing any of those entries. As is clear from the reasons recorded by the Assessing Officer, proceedings under section 147 of the Act were initiated only because of the information which the Assessing Officer received from Patiala regarding the purchases made by the assessee which had not been recorded in the books of account. As already noticed, this finding was set aside by CIT(A) and in further appeal the Tribunal has remanded the case to th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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