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TMI Blog2025 (5) TMI 620X X X X Extracts X X X X X X X X Extracts X X X X ..... ld. AO grossly erred in initiating reassessment proceedings u/s 147 of the Income Tax Act, 1961. 2. On the facts and circumstances of the case and in law also ld. AO grossly erred in not providing the copy of reason recorded to the assessee. 3. On the facts and circumstances of the case and in law also ld. Lower Authorities grossly erred in making and confirming addition of Rs. 7,76,750/- on account of cash deposits in bank account. 4. On the facts and circumstances of the case and in law also ld. CIT (A) grossly erred in restricting the addition to 50% at Rs. 7,76,750/- of additions made by Ld. AO even after agreeing that the assessee has made withdrawals and without considering cash flow chart submitted before him. 5. On the fact ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and also Certificate from the concerned Hospital, we feel that the reasons mentioned in the application constitute sufficient cause for not filing the appeal within the time before us. Moreover, no counter affidavit has been filed by the revenue. Therefore, taking a lenient view and considering the principles laid down in the case of Collector, Land Acquisition vs. Mst. Katiji, 1987 AIR 1353 (SC), we condone the delay in filing the appeal before us. 3. The brief facts of the case are that an information was in possession with the Income-tax Department that the assessee has deposited a sum of Rs. 4,00,000/- in her bank account and got receipt under section 194A of Rs. 15,469/- during the FY 2010-11 relevant to the AY 2011-12. The assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he AO could not found it acceptable. The AO further noted that the assessee has filed her return of income under section 44AD showing total sales at Rs. 23,47,969/- and NP of 8% has been declared thereon. The assessee was asked to furnish necessary details i.e. sundry debtors, sundry creditors, details of stock, details of sales and sale bills/vouchers etc. in respect of income declared under section 44AD of the IT Act. The assessee has not filed any details. Therefore, in absence of any details, the AO completed the assessment by making additions of Rs. 1,88,550/- on account of income shown u/s 44AD not explained Rs. 15,53,500/- on account of unexplained cash deposit in bank and Rs. 16,469/- on account income from other sources and assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd both these facts were sufficient to raise a doubt about concealment of income and hence the AO was justified in issuing a notice u/s 148 on the facts of the case. In this regard we refer to the case of ACIT v/s Rajesh Jhaveri Stock Brokers P Ltd. (SC) (291 ITR 500) wherein the Hon'ble Supreme Court held that at the stage of initiating action u/s 147, the final outcome of the proceeding is not relevant and at the initiation stage, what is required is "reason to believe", but not the established fact of escapement of income. Hence we dismiss first ground of appeal. 7. Ground No.2 has not been pressed by the ld. AR, hence the same is dismissed as not pressed. 8. In ground no.3 the appellant has challenged the action of lower authorities i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the source of cash deposits can not be fully accepted. However, considering the fact that the deposits were made in staggered manner and there were withdrawals in the intermittent periods and also the appellant's claim that it had cash balance of Rs. 3,77,000/- at the beginning of the year, it will be fair and reasonable to restrict the addition to the extent of 50% of the total deposits made during the year. Accordingly, the AO is directed to recomputed the addition and determine the tax and interest liability thereon. Thus, the ground no. 3 filed by the appellant is partly allowed." The ld. CIT (A) seems to had used his estimations only for allowing part relief to the appellant. The ld. A/R had submitted a cash flow statement covering a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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