TMI Blog2024 (4) TMI 403X X X X Extracts X X X X X X X X Extracts X X X X ..... g the assessment stage, therefore, in our view, the reopening of assessment under section 147/ 148 of the Act is valid, thus, ground No.1 raised by the assessee is dismissed. Unexplained cash deposited in the bank account - Counsel stated that the assessee has redeposited the cash withdrawn from the bank and partly amount deposited from the agricultural income - We note that there is a little merit in the arguments advanced by assessee, hence considering the above facts we are of the view that end of the justice would be meet if some percentage of the total addition may be added in the hands of the assessee. We note that the entire cash deposit in the bank account is not income of the assessee. Therefore we direct the assessing officer to disallow 10% of the balance amount - Decided partly in favour of assessee. - Shri Pawan Singh, JM And Dr. A. L. Saini, AM For the Appellant : Shri Mayank A. Ogriwala, CA For the Respondent : Shri Vinod Kumar, Sr. DR ORDER PER DR. A. L. SAINI, AM: Captioned appeal filed by the assessee, pertaining to Assessment Year (AY) 2012-13, is directed against the order passed by the Learned Commissioner of Income Tax (Appeals), [in short the ld. CIT(A) ], ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed return of income in response to notice under section 148 within the time limit prescribed in the said notice. Thereafter, assessing officer has issued five notices of hearing, however, the assessee did not make the compliance. Therefore, assessing officer noted that the assessee has failed to furnish any details relating to business activities undertaken by the assessee, nature of Income earned, details of bank accounts, details of cash deposits made in the bank accounts, sources of cash deposits and details of interest earned with Dena bank. In absence of requisite details/explanation the Assessing Officer is left with no option but to complete the best judgment assessment on the basis of material evidences gathered during the assessment proceedings. 4. During the course of assessment proceedings, on the basis of available AIR and 26AS information, notice u/s 133(6) of Act, 1961 was issued to Dena Bank, calling for Account opening form, bank account statement and KYC etc. In response thereto, the concerned bank provided details as called for. The data analysis of bank statement with Dena Bank reveals that various credit entries, including cash deposits made during the F.Y. 2011 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... th of cash and cheque entries in the bank account of the appellant. As no compliance was made under section 148 or various scrutiny notices, Ld.assessing officer resorted to best judgment assessment and made addition of above amount and interest earned from such bank account under section 69A of the I.T. Act, 1961. This being best judgment assessment appellant was provided further opportunity to submit to remand report preparation before the Ld. assessing officer and satisfy all the queries qua deposits in bank account. The source of funds as discussed below have remained unexplained till date. Appellant had deposited cash in bank account and assessment for year under appeal was taken up for scrutiny following reopening of assessment. In the rejoinder, it has been submitted by the appellant that an amount of Rs. 10,59,000 represents withdrawal of cash which has been redeposited in the bank account and hence it is explained. However, the same is not convincing argument, as it is not clear what was the purpose for withdrawal and why withdrawals were not utilized for any other purpose but were kept with him. Why there was delayed redeposit, were part withdrawals utilized eg. for speci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Officer were bad in law. The Ld. Counsel submitted that Assessing Officer, although mentioned in the assessment order that notice under section 148 was issued, however no any notice under section 148 was issued to the assessee, therefore appeal of the assessee should be allowed on this score only. The Ld. Counsel also stated that reasons recorded by the Assessing Officer for reopening of assessment is bad in law, as the assessee has deposited the cash in the bank account, out of business receipts. The Assessing Officer should have conducted the enquiry whether the amount deposited in the bank account is the income of the assessee or not, however, the assessing officer did not conduct enquiry. For that, Ld. Counsel for the assessee relied on the order of Coordinate Bench of ITAT, Surat in ITA No. 355/SRT/2016, dated 19.04.2021 in the case of Ashish Natvarlal Vashi vs ITO. In addition to this, the Ld. Counsel also relied others judgments which are mentioned in the legal compilations submitted by the assessee. 11. On merit, the Ld. Counsel for the assessee submitted that assessee has agricultural land and therefore cash deposit was out of agricultural land. The Ld. Counsel also stated ..... X X X X Extracts X X X X X X X X Extracts X X X X
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