TMI Blog2022 (8) TMI 939X X X X Extracts X X X X X X X X Extracts X X X X ..... al turnover disclosed in the Income Tax Return filed on 03.12.2015. Therefore, cash deposited in the bank account No. 50053185861 was treated as unexplained. It is seen from the bank statement furnished by the assessee for the period 01.04.2014 to 31.03.2015, there are deposits and withdrawals from the bank account of the assessee. The total deposits are Rs.8,24,000/- and withdrawals of Rs.9,35,084/-. The AO has not given any finding regarding withdrawals of such amount. Thus considered view that the authorities below ought to have given a clear finding regarding withdrawals made by the assessee during the year under consideration. Therefore, in view of the facts of the present case, there are debit entries in the bank statement of the assessee. The addition of entire deposits as unexplained was not justified. Hence, the assessee deserves to get benefit of tele-scoping if the benefit of tele-scoping is allowed then the entire addition would not survive. The AO is therefore, directed to delete the addition. Thus, grounds raised by the assessee are partly allowed. - ITA No.67/Asr/2019 - - - Dated:- 30-6-2022 - Shri Kul Bharat, Judicial Member For the Appellant : Shri Taru ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ments. FACTS OF THE CASE:- 4. Facts giving rise to the present appeal are that in this case, the return of income was filed through e-mode on 03.12.2015 vide acknowledgement No.898867150031215, declaring total income at Rs.2,69,600/-. Subsequently, the case was selected for limited scrutiny under CASS for cash deposit in bank accounts being more than the turnover. A notice u/s 143(2) of the Income Tax Act, 1961 ( the Act ) was issued and duly served upon the assessee. In response thereto, the assessee and her husband appeared before the AO and filed the details. The AO thereafter, proceeded to frame the assessment u/s 143(3) of the Act. Thereby, he made addition of Rs.8,57,000/- being the cash deposited in the bank account of the assessee. 5. Aggrieved against this, the assessee preferred appeal before Ld.CIT(A), who after considering the submissions and perusing the material available on record, dismissed the appeal of the assessee and sustained the impguend addition. 6. Aggrieved against the order of Ld.CIT(A), the assessee is in appeal before this Tribunal. 7. Apropos to Grounds of appeal, Ld. Counsel for the assessee reiterated the submissions as made in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under CASS with the following reasons as per Para 1 of A.O's order :- Cash deposited in bank a/c is more than the turnover. 4) Copy of detail mentioned in ITS indicating the type of scrutiny as limited is enclosed at page 24 and copy of ITS (of CIB) transactions are enclosed at page 25 to 36. As per ITS details, as mentioned supra, indicate that all the deposits were made in the A/c no. 50050119561 in the Kangra Centre Cooperative Bank, which is on the name of BBN Motors. Party's name (as per AIS) is Sanjeet Kanwar, as well as, her PAN was also mentioned. 5) That the Id. A.O issued notice u/s 143(2) dtd. 01-08-2016 and appellant replied that a/c no. 50050119561 does not pertain to her, as per Para-2 of A.O's order. Later on in further enquiry, the Id. A.O mentioned in Para-1, internal page-2 of A.O's order that appellant namely - Smt. Sanjeet Kanwar is only the guarantor in the said account. 6) On 27-10-17, the Id. A.O issued another notice u/s 142(1) for 06-11- 17 (as per Para 2.1 of A.O's order) and further adjourned to 13-11- 17 (as per Para 2.1 of A.O's order) That the appellant filed a reply dtd. 13-11-17 as per P ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and order is void-ab-initio. The matter is covered by the following case law of jurisdictional bench :- Gurpreet Kaur vs. ITO (ITAT, Asr) 60 IT Rep 393 (2016) ITA No. 87/16 Copy enclosed at page 50 to 63 (Refer para -29) 10) That the notice issued u/s 142(1) dtd. 22-12-17, as per Para-2.3 of A.O's order is bad-in-law, as ultra-virus to the Board circular being not mentioning the widening of scope of enquiry from limited to complete and reason for selection and overlooking the board circular dtd. 29-12-15, enclosed at page 37 to 38. 11) That if your Honour is not satisfied with the legal issue then the case on merits is as under as per additional/legal ground and ground no. 5 :- Additional/Legal Ground :- That the Id. A.O accepted sale proceeds as offered, as well as, the returned income of the appellant and then again cannot be permitted to make the addition u/s 69, of said sale proceeds etc. as unexplained investments being cash deposited in the bank out of cash sales, which amounts to double addition, once as sales and secondly as unexplained investments. Ground No. 5 That the Ld. CIT(A) has wrongly that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Id. CIT(A) wrongly ignored that, the Id. A.O overlooked the CBDT instruction no. 20/15 dated 29-12-15, while issuing the first notice u/s 143(2) dated 01-08-16 and notice is bad-in-law, as well as, Ultra-vires to the board circular being not mentioning scope of enquiry and reason for selection. Ground after removing typographical error:- That Id. CIT(A) wrongly ignored that, the Id. A.O overlooked the CBDT instruction no. 20/15 dated 29-12-15, while issuing the notice u/s 142(1) dated 22-12-17 and notice is bad-in-law, as well as, Ultra-vires to the board circular being not mentioning scope of enquiry and reason for selection. 7.1. Per contra, Ld. Sr. DR opposed these submissions and supported the orders of the authorities below. He submitted that there is no illegality into the orders of the authorities below. The assessee grossly failed to explain the source of cash deposits in the bank account. The contention of the assessee is that he had carried out certain business activities which are not supported by any plausible evidence. Therefore, the AO was justified in making the addition, treating the cash deposits as unexplained. 8. In re-joinder, Ld. Counsel fo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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