2016 (8) TMI 1164

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....ct") as well as raised grounds on merit. We are inclined to deal with the grounds that have been raised on merit first. 3. Grounds No.9 and 10 are against the confirmation of addition of Rs. 1,27,470/- made by the Assessing Officer towards cash deposits in the joint saving bank account. 4. The brief facts of the case are that the assessee has furnished the return of income declaring an income of Rs. 3,64,860/- on 29.3.2010. The ITO-I, Faizabad issued a query on 29.6.2012 for which the assessee has replied vide letter dated 14.8.2012. However, the Assessing Officer, after recording the reason to reopen the assessment, issued notice on 19.11.2012 under section 148 of the Act, pursuant to which the assessee replied that the return filed ....

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....uld not provide or explain any proof on opening cash in hand available to him or other co-account holder, therefore, opening balance of Rs. 1,27,470/- could not be sustained. After verification the information's available on record i.e. detail of rent income earned in cash, other income as per ITR of assessee and other co-owner and cash withdrawal from bank etc. in support of availability of cash to assessee and other co-account holder to the extent of Rs. 8,72,530/- is hereby accepted. Therefore, this ground of appeal is partly allowed and appellant gets relief of Rs. 8,72,530/- against addition of Rs. 10 lakhs and addition of Rs. 1,27,470/- is hereby sustained." 6. Aggrieved, the assessee is before us. 7. We have heard both the part....

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....709 - Rs. 1,54,264 ) and the fact is that the assessee had declared Rs. 3,96,814 as income for assessment year 2008-09. In the light of the said documents, we find that the assessee has been able to prove the source of Rs. 1,27,470/- and, therefore, we are inclined to delete the addition sustained by the ld. CIT(A) on this issue. 8. Coming to the next issue i.e. grounds No.11 & 12 is in respect to the confirmation of addition of Rs. 3.12 lakhs on account of accretion in the capital account. 9. The brief facts on this issue are that the Assessing Officer noted that the assessee has noticed capital of Rs. 4.50 lakhs in cash in his capital account in the firm, M/s Harish Hosiery. The assessee was asked by the Assessing Officer to furnish....

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....see was having sufficient opening cash in hand before making contribution in his capital account in M/s Harish Hosiery to the tune of Rs. 3.12 lakhs. So the ld. CIT(A)'s reasoning that there was no document in respect to the cash in hand as on 1.4.2008 is erroneous and, therefore, we are inclined to delete the addition of Rs. 3.12 lakhs. 12. Since we have dealt with the issues on merit and deleted the additions, we are not inclined to adjudicate the legal issue in respect to the reopening. However, it may be noted that merely on the basis of the deposit in the bank per se cannot be the basis for taking a view that the income has escaped assessment. The Assessing Officer has opined that an income of Rs. 10.01 lakhs has escaped assessment ....