TMI Blog2016 (9) TMI 304X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee was accepted. Order was passed u/s 143(3) read with section 148 of the Act on 25.2.2014. Thus, the opening balance cannot be added. Coming to the surrender made by the assessee, as find that this is a conditional surrender. The assessee, in his detailed reply dated 27.12.2011, explained the sources of cash deposit made during the year. It was submitted that the assessee was having sufficient cash in hand at the beginning of the year amounting to ₹ 22,36,415/-. As already stated, this opening balance was explained by filing the financial statement as well as the assessment order for the assessment year 2008-09. The assessee, in his detailed explanation, had explained monthwise, the cash deposits made in the savings bank acc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 18.9.2014 for the assessment year 2009-10. 2. The assessee is an individual and is in the business of property dealing and trading. He filed his return of income on 28.7.2009 declaring income of ₹ 1,49,540/-. As certain cash deposits were found in her savings bank account, the AO called upon the assessee to explain the sources of these cash deposits. The assessee filed detailed explanation before the AO. A copy of the same is furnished before me. At the fag end of the assessment proceedings, the assessee, while reiterating his detailed submissions explaining the sources of deposits made vide letter dated 27.7.2011, surrendered an amount of ₹ 20 lac on a condition that the AO shall not levy penalty u/s 271(1)(c) of the Act, a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as well as the assessment order for the assessment year 2008-09. The assessee, in his detailed explanation, had explained monthwise, the cash deposits made in the savings bank account along with the corresponding sources. This explanation runs into ten pages. Cash memos with regard to the sales made of MS BARS was also furnished. The AO has not pointed out any defect or discrepancy in these details submitted by the assessee. The entire addition was based on the conditional surrender made by the assessee. The AO did not honour the condition of not levying penalty and went ahead and issued notice for levying penalty u/s 271(1)(c). The AO, in my view, should have entirely rejected the offer of the assessee and gone ahead with his finding base ..... X X X X Extracts X X X X X X X X Extracts X X X X
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