TMI Blog2017 (6) TMI 1035X X X X Extracts X X X X X X X X Extracts X X X X ..... e which were only source of income for assessee which have been deposited in the bank account of the assessee. Therefore, there was no justification to make the addition of ₹ 8,71,000/- against the assessee on account of peak of investment in the bank account. In this view of the matter, set aside the orders of authorities below and delete the addition. This ground of appeal of the assessee is allowed. Addition as bank interest on bank deposit - This income is not shown in the return of income despite assessee earned it during the year under consideration - Held that:- As we have deleted the substantial addition of ₹ 8,71,000/- therefore, no taxable income is left for consideration. Accordingly, the addition made by Assessing Officer of ₹ 2990/- is confirmed in principle. However, since no taxable income is left, therefore, Assessing Officer will not make it taxable in the computation of income because the addition would be below taxable income. This ground is accordingly, disposed off in terms above. - ITA No. 1164/CHD/2016 - - - Dated:- 6-3-2017 - SHRI BHAVNESH SAINI, JUDICIAL MEMBER For The Appellant : Shri Tej Mohan Singh For The Respondent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , could not prove the genuineness of J-forms as he could not produce the records/registers in this regard. Further, from the perusal of the return filed by assessee on 13.02.2013 for the period under consideration, the assessee has shown nil income. He did not show any agriculture income in the return of income and also could not produce documentary evidence regarding agriculture expenses which were made by him to earn agriculture income. In the absence of proper reply/evidences, the amount of peak deposits/funds available with the assessee as on 27.05.2004 was worked out to ₹ 8,71,000/- and same were treated as unexplained investment made out of undisclosed source and added to the income of the assessee under section 69 of the Act. Further, from the perusal of the bank statements of the assessee, it was noticed that assessee has earned interest of ₹ 2,990/- during the period under consideration which was not reflected in the return of income, same was also added to the income of the assessee. 5. The assessee challenged the re-opening of the assessment before ld. CIT(Appeals) as well as both the above additions. The ld. CIT(Appeals), however, dismissed appeal of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... notice. However, the assessee filed return of income belatedly on 13.02.2013 at the fag end of completion of re-assessment proceedings. The Assessing Officer passed the assessment order on 22.03.2013. The proviso to Section 143(2) provides that No notice under this clause shall be served on the assessee after expiry of twelve months from the end of the month in which return is furnished . Since the assessee did not file valid return of income within the stipulated period as directed in the notice under section 148, therefore, there is no question of issuing any notice under section 143(2) of Income Tax Act to the assessee. The proviso to Section 143(2) deals with the period of service of notice from the end of the month in which the return is furnished. Since no valid return is filed, therefore, there is no question of compliance of proviso to Section 143(2) of the Act. The assessee filed return of income belatedly at the fag end of completion of re assessment proceedings on 13.02.2013. Therefore, there is no question of service of notice upon assessee under section 143(2) of the Act when assessment was completed in March,2013 itself. In this view of the peculiar facts and circums ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... B-53 is copy of the statement of Shri Om Parkash, Stamp Vendor which were recorded by Assessing Officer in which he has confirmed selling stamp papers to the owner of the land Shri Gian Chand on which agreement for cultivation was recorded (PB- -21). The ld. counsel for the assessee, therefore, submitted that assessee proved the earning of agriculture produce therefore, no adverse inference should be drawn against the assessee. On the other hand, ld. DR relied upon orders of authorities below. 9. After considering rival submissions, I am of the view addition is wholly unjustified. The assessee produced copy of the agreement between the owners of the agriculture land and the assessee through which entire agricultural land was given to the assessee in assessment year under appeal for cultivation. The Assessing Officer verified the stamp paper on which agreement was executed from the stamp vendor Shri Om Parkash. Shri Om Parkash was examined under section 131 of the Act at assessment stage in which he has confirmed of selling the stamp paper to one of the owner of the land Shri Gian Chand, therefore, genuineness of the agreement entered into between the owners of the land and asses ..... X X X X Extracts X X X X X X X X Extracts X X X X
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