Tribunal upholds reassessment on unexplained cash deposits, dismisses appeal on interest levy.

The tribunal upheld the reassessment proceedings under section 147 and the addition of unexplained cash deposits in the bank account. The appeal of the assessee was dismissed, including the ground related to the levy of interest under section 234B.

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Issues:
1. Validity of reassessment proceedings under section 147.
2. Addition of unexplained cash deposit in the bank account.
3. Levying interest under section 234B.

Analysis:

Issue 1: Validity of reassessment proceedings under section 147
The assessee challenged the reassessment proceedings under section 147, contending that the reasons recorded were not furnished, rendering the assessment bad in law. The assessing officer issued notices and reminders due to non-filing of returns within the prescribed time limit. The assessing officer provided opportunities for compliance, but the assessee failed to respond. The tribunal upheld the reassessment under section 147, stating that the assessing officer had given due opportunity to the assessee, and the case laws cited by the assessee were not applicable. The tribunal found no reason to interfere with the decision of the CIT(A) in justifying the action of the assessing officer in reopening the assessment.

Issue 2: Addition of unexplained cash deposit in the bank account
The assessee declared income but failed to substantiate business activities. The assessing officer observed discrepancies in claimed purchases and non-existent party details. The assessee changed explanations during the appeal, stating the bank account was operated by a travel agent. However, the tribunal noted that the assessee had declared and owned the bank account in the income tax return, contradicting her later claims. The tribunal found the assessee failed to substantiate the source of cash deposits, leading to the dismissal of grounds 3 to 6 of the appeal.

Issue 3: Levying interest under section 234B
The tribunal dismissed the ground related to the levy of interest under section 234B, stating that the interest is to be charged mandatorily as per the law.

In conclusion, the tribunal upheld the reassessment proceedings under section 147 and the addition of unexplained cash deposits in the bank account. The appeal of the assessee was dismissed, including the ground related to the levy of interest under section 234B.

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