TaxTMI 
TaxTMI 
2017 (12) TMI 805
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....itation to file the appeal against the impugned order. However, due to inadvertence and over sight on the part of the Chartered Accountant of the assessee namely Sh. H.M. Singhvi, the appeal could not be filed in time. The assessee has also filed an affidavit of Sh. H.M. Singhvi (C.A.) an authorized representative of the assessee wherein he has stated that due to over sight and inadvertence the appeal papers remained in the office and could not be filed in the registry of this Tribunal. Thus, the assessee has explained that it is a banafide and inadvertent mistake on the part of the authorized representative of the assessee who could not filed the present appeal within the period of limitation. I find that the appeal fee was paid on 17.08.2016 and this fact has not been disputed by the Revenue. Therefore, when the authorized representative of the assessee in his affidavit has accepted the bonafide mistake and oversight for not filing the appeal within the period of limitation despite the appeal was ready and fee was paid in time then it would be a reasonable cause for not presenting this appeal within the period of limitation. Having regards to the facts and circumstances of the....
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....eed. 6. Before the Tribunal, the ld. AR of the assessee has submitted that the Assessing Officer has reopened the assessment without reaching to the conclusion of the cash deposit in the bank account represents the income of the assessee escaped assessment. The Assessing Officer at the time of initiation of proceedings u/s 147 of the I.T. Act must have reasons to believe that any income chargeable to tax has escaped assessment. Thus, the AO was wrong in treating the total cash deposits as income u/s 69A of the Act. Hence, the initiation of proceedings u/s 147 was illegal and bad in law. In support of his contention he has relied upon the decision of Hon'ble Delhi High Court in case of United Electrical Co. (P) Ltd. v. CIT 178 CTR 192 and submitted that the Hon'ble High Court has held that existence of tangible material for the formation of opinion is pre-requite for initiation of action u/s 147 of the Act. There should be facts before the AO that reasonably give rise to the belief, but the facts on the basis of which he entertain the belief need not at this stage be tentative conclusion. The material before the AO must have rational connection or relevant bearing to the formatio....
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....aped assessment. Further, there is no assessment and the return of income was processed only u/s 143(1) of the Act, therefore, it is not a case of change of opinion. Only during the course of assessment proceedings the AO came to know that the assessee sold the house. Accordingly I do not find any error or illegality in the action of the AO to reopen the assessment u/s 147/148 of the IT Act. The decisions relied upon by the assessee are not applicable in the facts of the case as prior to the reopening of the assessment the Assessing Officer conducted an enquiry in the assessment proceeding of the wife of the assessee. 9. Ground no. 2 is regarding assessment made u/s 144. The assessee did not response to the notice issued u/s 148 and further, the assessee has also not filed the return of income in response to the notice issued u/s 148 of the Act. However, the assessee requested the AO consider the original return of income as return filed in response to the notice issued u/s 148 of the IT Act. Thereafter, the assesse did not appear before the Assessing Officer. Accordingly, when the assessee has chosen not to participate in the assessment proceedings then the AO was left with no ....
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....h has not been explained by the assessee. Thus, it is clear that cash consideration if any received by the assessee, the same has been paid for purchase of the new house and therefore, the source of cash deposit in the back account remained unexplained. The assessee has relied upon various decisions however, in those decisions there are some documents to support the receipt of cash consideration. Hence, the assessee has failed to explain the source of Rs. 20,54,500/- cash deposit in the bank. 12. As regards the additional ground No. 1 the assessee has challenged the enhancement of assessee made by the ld. CIT(A) without issuing the show cause notice. 13. I have heard the ld. AR as well as DR and considered the relevant material on record. Undisputedly the assessment was completed ex-parte u/s 144 r.w.s. 147 of the Income Tax Act. It is apparent that the assessee did not disclose the transaction of sale of house and the AO completed the assessment by making the addition on account of cash deposit in the bank account of the assessee. Before the ld. CIT(A) the assessee claimed the benefit of section 54 on account of investment made in purchase of new house. The ld. CIT(A) denied....