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TMI Blog2025 (5) TMI 282X X X X Extracts X X X X X X X X Extracts X X X X ..... 43(3) of the Income-Tax Act,1961 (hereinafter referred to as "the Act") for the assessment year 2017-18. 2. Brief facts of case are that appellant/assessee filed income tax return for assessment year 2017-18 on 10.07.2017 declaring total income Rs. 9,08,630/-. The return was processed under Section 143(1) of the Act and case taken up for limited scrutiny for under CASS with reasons "large value of cash deposits during demonetization period as compared to returned income". Subsequently, notice under Section 143(2) of the Act on 27.08.2018 was issued. Later on, the notice under Section 142(1) of the Act along with questionnaire were issued and served upon the assessee. As per information, assessee deposited cash of Rs. 15,47,000/- in his ban ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd in cash deposits during the year under consideration as compare to preceding year. 6. The Ld. CIT(A) has erred in law in not considering the cash book submitted by the assessee when the assessee is maintaining accurate financial records. 7. The Ld. CIT(A) has erred in law and in facts in upholding the addition purely on the basis of assumptions and surmises without considering the facts of the case. 8. CIT(A) has erred in law in upholding the addition in the said case u/s 69A and section 115BBE of the Act as the said sections are not applicable in this case." 5. At the time of hearing, Learned Authorized Representative for the appellant/assessee submitted that in additional ground no.1, assessee challenging the validity of the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appellant prays to draw your kind attention to copy of ITR (PB 17) where the jurisdiction of the appellant is mentioned as AO, Ward 26(1), Delhi and since, the notice u/s 143(2) has been issued based on same return, there was no reason for the AO Ward 33(1), Delhi to issue notice u/s 143(2) of IT Act ignoring the fact that jurisdiction of the case had been with different authority i.e. AO, Ward 26(1), Delhi. It is therefore a case where the assessment under appeal is outcome of a jurisdictional notice issued by a non-jurisdictional AO. In these circumstances, the assessment, resulting therefrom, needs be quashed in view of the following decisions: A. Vedanta Resources Ltd vs ACIT W.P.(C) No.6372 of 2022 (Orissa) B. Louis Dreyfus Comp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hdham Infrastructure LLP in IA No.GA/1/2023 dated 14.08.2023." 7. Learned Authorized Representative for the appellant/assessee regarding ground nos. 1 to 8 further submitted that regular ground nos. 1 to 8, on merits of addition of Rs. 15,47,000/- u/s 69A r.w.s. 115BBE of IT Act. From para 4 at page 4 of AO's order, it is evident that the appellant has deposited Rs. 15,47,000/- on 24.11.2016 during the demonetization period and besides above, the amounts of Rs. 5 lakh was deposited on 12.08.2016, thus total cash deposited during the year has been Rs. 20,47,000/-. The appellant gave explanation regarding the source of above cash deposit through replies dated 06.09.2018 (PB 3), 18.07.2019 (PB 26-27), 02.11.2019 (PB 58), 26.11.2019 (PB 94 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing jurisdiction without issuing any notice. ITRs for the assessment years 2015-16, 2016-17 and 2017-18 at page nos. 5, 12 and 17 of the paper books, jurisdiction of the appellant/assessee was with Ld. AO, Ward 26(1), Delhi. As such, assessment under appeal is the outcome of a jurisdictional notice issued by non-jurisdictional Ld. AO. Therefore, assessment needs to be quashed. Reliance can be placed on decision of following case laws: A. Vedanta Resources Ltd vs ACIT W.P.(C) No.6372 of 2022 (Orissa) B. Louis Dreyfus Company Asia Pte Ltd vs CIT W.P.(C) No.9713/2019 (Del) C. Nirmal Gupta vs Pr CIT ITA No.108/Del/2018 dt: 22.06.2021 D. ITO vs M/s NVS Builders P Ltd ITA No.3729/Del/2012 dt: 08.03.2018 E. Cosmat Traders P. Ltd. (2021) ..... X X X X Extracts X X X X X X X X Extracts X X X X
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