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TMI Blog2022 (1) TMI 88X X X X Extracts X X X X X X X X Extracts X X X X ..... O of converting the limited scrutiny which was initiated for AY 2017-18 into a complete scrutiny for AY 2015-16. Under the facts and circumstances of the case, the CIT(A) ought to have held that the action of assessing income for the year under consideration is without jurisdiction and is not permissible either in law or on facts. 2. The learned CIT(A) has erred both in law and on the facts of the case in confirming the action of the AO of making an addition of Rs. 72,728/- by treating opening cash balance as unexplained u/s. 68 r.w.s. 115BBE of the Act. 3. The learned CIT(A) has erred both in law and on the facts of the case in confirming the action of the AO of making an addition of Rs. 4,41,845/- by treating cash sales as bogus u/s. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 17,90,000/- and Rs. 49,000/- in his bank accounts during the demonetization period and has furnished online reply claiming that the source of these deposits were "opening cash balance, past savings and cash sales". The Assessing Officer observed that the assessee filed her last return of income for the Assessment Year 2012-13 which shows meagre total sales of Rs. 2,19,311/- and closing cash balance of Rs. 56,015/- in comparison to cash sales of Rs. 25,45,570/- and closing cash balance of Rs. 7,01,198/- showing in the current year under scrutiny. The return for Assessment Year 2013-14 & 2014-15 were not filed. The due date for filing returns was 31.07.2015 but the return for the Assessment Year 2015-16 was also filed after due date i.e. on 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the sales realisation has been offered for taxation, addition of such amount cannot be made again under Section 68 of the Act or else it shall tantamount to double taxation. The Ld. AR submitted that the sum recorded as sales in the books were not doubted by the Revenue as well as profit element was already offered to tax by the assessee and the corresponding purchases were accepted by the Assessing Officer. Thus, the addition made under Section 68 of the Act tantamount to double taxation of the same income. The Ld. AR pointed out Balance Sheet, copy of Profit & Loss Account, Capital Account as well as acknowledgment of Income Tax return and STI, relevant extracts of Bank statements, Cash Book and few purchase bills related to the transact ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... seen that the opening balance of Rs. 72,728/- was not confirmed from any closing balance of the earlier period by the assessee before the Revenue Authorities. It is an admitted fact that the assessee has not filed return of income for Assessment Years 2013-14 and 2014-15 and there was no Balance Sheet & Profit & Loss Account before the Assessing Officer who verified the opening balance for the present Assessment Year. From the perusal of the records before us, the Ld. AR submitted that the same can be demonstrated before the Assessing Officer by the assessee. Therefore, we are remanding back this issue to the file of the Assessing Officer for adjudicating the issue afresh. Needless to say the assessee be given opportunity of hearing by foll ..... X X X X Extracts X X X X X X X X Extracts X X X X
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