https://www.taxtmi.com/css/info/rss_sitemap/rss_feed.css?v=1746094055 https://www.taxtmi.com Business/Tax/Law/GST/India/Taxation/Policies/Legal/Corporate Tax/Personal Tax/Vat Law/Legal Information/Tax Information/Legal Services/Tax Services Tax Management India. Com / MS Knowledge Processing Pvt. Ltd. All rights reserved. One stop solution for Direct Taxes and Indirect Taxes https://www.taxtmi.com/caselaws?id=398135 https://www.taxtmi.com/caselaws?id=398135 Validity of reopening of the assessment - limitation of the notice issued U/s 148 - unexplained source of cash deposit in the bank account - assessee is an individual and has not filed return of income U/s 139 - as per assessee approval by the competent authority u/s 151 without application of mind - HELD THAT:- Notice is dispatched through Speed Post - issuance of notice includes not only the preparation of notice but the notice shall go out of the control of the A.O. and is sent through one of the modes prescribed U/s 282 of the Act. Notice was issued within the period of limitation and was also duly served upon the assessee on the very next day, therefore, the question of limitation does not arise. Further the assessee has complied with the notice by filing the return of income which is only return of income filed by the assessee. Hence, the return of income filed by the assessee in response to notice U/s 148 of the Act is otherwise to be scrutinized by the A.O. Hence, we do not find any substance in the objection raised by the assessee against the limitation of the notice issued U/s 148. Mechanical approval granted by the ld. Pr.CIT - In the case in hand, the assessee has not filed any return of income U/s 139 of the Act and the A.O. received information from the DIT(Inv.), Jaipur regarding the deposit of cash of Rs. 9.19 lacs in the bank account of the assessee that too after an enquiry conducted by the Investigation Wing regarding the source of the said deposit and only when the reply of the assessee was not found to be satisfactory the said information was sent to the A.O. for appropriate steps - when the reasons recorded by the A.O. prima facie lead to the formation of belief that the income assessable to tax has escaped assessment then the ld. Pr.CIT is not required to record separate satisfaction as the reasons itself reveal the satisfaction of the A.O. - Decided against assessee. Unexplained cash deposit u/s 68 - assessee has explained the source of cash deposit in the bank account as the sale proceeds of the land sold by the father of the assessee for consideration - wife of the assessee filed an affidavit claiming that the amount of Rs. 2,72,500/- deposited in the ICICI bank account belongs to her as it is a joint bank account of husband and wife and the said deposit was made by her out of her boutique business receipts - HELD THAT:- When the father of the assessee has sold the property in the year 2007 for a consideration of Rs. 53.00 lacs and the assessee is the only legal heir then the possibility of the source of deposit in the bank account of the assessee from the sale proceeds of the property of the father is not ruled out. However, the assessee has not produced the details of the bank account of father to support the fact that there was a withdrawal of cash from the bank account of the father. Therefore, in these facts and circumstances, we find that this issue requires a detailed and proper verification regarding source of deposit. Further to the extent of income declared by the assessee as well as the claim of wife of the assessee regarding the deposit of Rs. 2,72,500/- cannot be rejected. Therefore, to the extent of income declared by the assessee as well as the wife of the assessee has to be considered as source of deposit. Hence, we set aside this issue to the record of the A.O. for proper verification of the facts regarding the source being the sale proceeds of the property sold by the father of the assessee. The assessee is also directed to furnish details of bank account of father of the assessee for the purpose of conducting the proper enquiry by the A.O. by calling the relevant details from the bank. Hence, this issue is restored back to the file of the A.O. Penalty u/s 271F - default on the part of the assessee for non-filing of the return of income - HELD THAT:- As we have already set aside the issue of addition made by the A.O. to the record of the A.O. Even otherwise when the explanation of the assessee that his income is below the taxable limit except the deposits made in the bank account is factually correct and is a a bonafide explanation, then, in view of the provisions of Section 273B of the Act, the said explanation is a reasonable cause for default on the part of the assessee and accordingly, the penalty U/s 271F of the Act is not leviable, hence deleted. Case-Laws Income Tax Wed, 02 Sep 2020 00:00:00 +0530