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TMI Blog2020 (4) TMI 584X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee has not filed return of income for the assessment year under consideration and the source of the above cash deposits remained as unexplained due to the failure on the part of assessee to disclose the source of the above cash deposits. An opportunity was provided to the assessee by issuing letter dated 04. 03. 2016 at the address as provided by the assessee to the Dept. However, the assessee made no compliance. In view of these facts, the AO had reason to believe that cash deposits of the 14, 82, 000 is unexplained in the hands of the assessee, and thus, the said income chargeable to tax has escaped assessment for the assessment year 2009-10 by reason of the failure on the part of the assessee to make a return under section 139 of the Act. Therefore, a notice under section 148 of the Act was issued on 22. 03. 2016 and duly served upon the assessee on 23. 03. 2016. However, the assessee has not filed the return of income within time prescribed. Therefore, one more opportunity was given to the assessee. In response to notice under section 148 of the Act, the assessee had filed her return of income on 07. 07. 2016 declaring total income of the 75,000. Further, notice under section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ench) wherein it was held that return filed after the time is specified in the notice under section 148 is to be treated as nonest. Hence, the failure of the appellant to file the return within 30 days debars him to question the jurisdiction of the AO as per the provisions of section 124 (3) (b) of the IT Act. Therefore, the Ld. CIT(A) held that above legal and factual position, makes it evident, that at this stage, the appellant is not in the position to challenge the assumption of jurisdiction. It has been held by various courts that if the objection to the jurisdiction has been made to the AO beyond the time limit fixed by section 124(3), then there is no legal obligation on the part of the AO to take up matter to the higher authority. Reliance was placed on following decisions: Vishvanath Gopal Oil Mills 32 ITR 344 (Bombay), Rasulji Buxji Kathwala 32 ITR 592 (Raj.), Dhrangadhra Trading Co (P) Ltd. 60 ITR 674 (Gujarat). The CIT (A) further relying on the decision in the case of Hindustan Transport Vo. 189 ITR 326 (Allahabad) of SLP dismissed 188 ITR (St.) 84 (SC) held that the right to call any dispute and jurisdiction of the assessee is lost as soon as the assessment has been c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... notice issued under section 148 of the Act. In the instant case, the notice was issued on 22.03. 2016, but no return of income was filed within 30 days as provided in the notice under section 148 of the Act. Therefore, failure of the assessee to file the return of income within time provided in the notice under section 148 of the Act makes the return filed subsequently (after the expiry of time limit) as nonest. Considering these facts, we are inclined to agree with the finding of Ld. CIT (A) and various judgements relied by him as discussed above in his finding as well as in his appellate order. Therefore, we do not find any infirmity in the order of CIT (A), accordingly, same is upheld. So far, reliance on the decision in the case of Delhi and Amritsar benches of Tribunal, these are entirely distinguishable on facts and law, in the light of peculiar facts of the cases where no return of income was filed within the statutory period of the issuance of notice under section 148 of the Act. Further, in the case of Bir Bahadur Singh Sijwali (supra) the tribunal noted that reasons were recorded after issuance of notice under section 148 of the Act, whereas reasons to be recorded befo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at Farrukhabad out of sale proceeds received from the traders for whom the goods were sold. The assessee relied on the affidavit filed during the assessment proceedings and submitted that she was a small businessperson and therefore was not having any business establishment. In view of this, the AO asked the assessee to furnish confirmation from the three persons from Farrukhabad, who were claimed to be have made cash deposit to the sales made of Jari. However, she could only submit Election ID Card of one Shri Ishahar claimed to be her customer but no other supporting documents are filed apart from the ID proof. Therefore, the AO was not convinced with submissions, hence, accordingly, made addition of entire cash deposits including cheque deposit of Rs. 15,11,906 as unaccounted income. 10. Being, aggrieved, the assessee filed an appeal before the Ld. CIT (A). However, CIT (A) held that the appellant has not been able to prove the source of the cash/credit deposits in the bank account. The submissions and evidences produced by the appellant have been found to be fabricated and manufactured for a make-believe arrangement. Therefore, the addition made by the AO of Rs. 15,11,906 wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ence in support of the same was filed. The documentary evidences did not support the assertion in affidavit. However, it is discernible from bank statement that day-to-day cash deposits as well as cash withdrawals and that bank deposits were made from out station as per claim made in her affidavit. She had filed identity of Ishahar in the shape of election ID Card. The assessee has also filed addresses of three person being her customer who have claimed to have deposited cash in her bank account from Farrukhabad Therefore, the contention raised in her affidavit may be true. It is also facts that saving bank account was not disclosed on in return of income. Therefore, considering circumstances and taking holistic view and approach, the entire cash deposits cannot be added as income of the assessee. The bank account also reflected cash withdrawals and re-deposit. The assessee has not maintained any books of accounts nor the bank account were disclosed in return of income. However, it is discernible from bank account that cash deposits were made for various out stations. Therefore, it is clearly apparent that cash deposits are linked with business transaction of the assessee. Since th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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