TMI Blog2020 (12) TMI 83X X X X Extracts X X X X X X X X Extracts X X X X ..... es and as evident from the order of the Ld. CIT(Appeal) before making the best judgment assessment, the said intention was conveyed to the assessee by the Assessing Officer still then the assessee has not bothered to appear before the Revenue Authorities. The assessee has not brought on record any evidence to show that notices have not reached at his registered address given to the Department. On the contrary, it is on record of the Department that the notices were duly served appropriately as per law and was received by the assessee. Therefore, observation of the Ld. CIT(Appeal) is upheld on this issue and Ground No.2 raised in appeal by the assessee is dismissed. Disallowance of cash deposit in IDBI Bank u/s.68 - HELD THAT:- Revenue Authorities has not brought out any definite case in this regard against the assessee nor has brought out any evidence that such deposits were from some other source of income, not disclosed by the assessee. When the Revenue is admitting the earlier withdrawals of cash by the assessee, when the Revenue is also admitting the assessee having enough cash balance, in such scenario, there cannot be any addition on this ground. It is well explained tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is Authorized Representative. The case was heard after recording submissions of the Ld. DR. There was no adjournment petition also filed by the assessee. 3. At the very outset, we find that the appeal is time barred by 60 days. However, this delay has been explained by the assessee at the time of filing of appeal through condonation petition and doctor‟s certificate which are on record. The Ld. DR submitted that going through these documents, he has no objection if the delay is condoned and the case is heard on merits. That on perusal of the aforesaid documents regarding the delay in filing of appeal on record, we find that the delay cannot be attributed to the deliberate action of the assessee or any mala-fide intention on the part of the assessee and the entire delay is explained through doctor‟s certificate which is not disputed by the Department. In such scenario, we condone this delay of 60 days after recording the submissions of the Ld. DR and the case is heard on merits. 4. The brief facts in this case are that the assessee is a Government irrigation contractor. For the assessment year 2011-12, the assessee filed his return of income as per the books of acc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ow mark, it is seen that assessee had enough cash balance of ₹ 7,59,971/- on the date of withdrawal of ₹ 5,30,000/- i.e. on 01.03.2011. There was no need to withdraw ₹ 5,30,000/- and keep it with him till 14.03.2011 and redeposit ₹ 2,00,000/- out of alleged cash withdrawal of ₹ 5,30,000/- made on 01.03.2011. It is unbelievable that assessee really has cash balance and carried it till 14.03.2011. The explanation given by the appellant is therefore not tenable and hence liable to be rejected. I therefore uphold the addition ₹ 2,00,000/-. 6. That on perusal of the relevant records and order of the Ld. CIT(Appeal), we find that Revenue has not disputed the earlier withdrawals by the assessee from the bank. The Revenue has also not disputed that the assessee has enough cash balance as evident at Para 5.3 of the Ld. CIT(Appeal)‟s order. It is the case of the assessee that from the cash withdrawals, the deposit of ₹ 2,00,000/- have been made. The Revenue Authorities has not brought out any definite case in this regard against the assessee nor has brought out any evidence that such deposits were from some other source of income, not disc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e escapement of liability in times of accidents and deaths. The AR s statement that nature of business requires cash payments only has no weightage. Legislature has intention of minimizing the cash transactions in the form of enactment of section 40A(3) of the Act. The AR has not brought on record anything to support that the payments claimed to have incurred have really reached to the recipients. No corroborating evidence or confirmations to show that expenditure through self made vouchers is wholly and exclusively laid down for appellant s business purpose. Considering the circumstances of the case, AO s remand report and findings and also considering nature of expenditure booked by the appellant, I restrict the addition made by the AO by way of estimated disallowance to 50%. Resultantly, the addition is restricted to 10% of direct expenses. 9. That on perusal of the order of Ld. CIT(Appeal), it is evident that on this issue, the assessee has failed to bring on record anything to support that the payments claimed to have actually incurred for the purpose of assessee‟s business. That there were no corroborating evidence or confirmations filed by the assessee t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f income with respect to expenditure. However, the assessee did not attend and avail opportunities of explaining the return before the Assessing Officer. That despite many opportunities, the assessee did not respond to the Assessing Officer. That even before making best judgment assessment, the Assessing Officer had also communicated the said intention of framing assessment u/s.144 of the Act to the assessee. Then also the assessee did not avail this final opportunity. In such scenario, we are of the considered view that the Revenue Authorities have absolutely done correct thing as per process of law enshrined in the Act. Therefore, the observation of the Ld. CIT(Appeal) on this issue is upheld and Ground No.1 raised in appeal by the assessee is dismissed. 12. Ground No.2 raised in appeal by the assessee pertains to lack of opportunities in final hearing. The Ld. CIT(Appeal) vide Para 5.2 of his order has held as follows: 5.2 Regarding second ground of appeal lack of opportunity in final hearing. As discussed in Para 9 above, the appellant was given many opportunities to support his return of income. He is simply raising hue cry that he was not given opportunit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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