2018 (6) TMI 1047

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....esenting cash deposited in the Bank account of the assessee maintained with Yes Bank Ltd. 4. Briefly stated the facts of the case are that the Assessing officer, on the basis of certain AIR information, initiated reassessment proceedings and issued notice u/s 148. No return was filed pursuant to such notice. The Assessing Officer found that the original return was filed declaring total income of Rs. 1,36,000/-. From a copy of bank statement received u/s 133(6) from Yes Bank Ltd., Rudrapur, the Assessing officer computed peak balance in the bank account at Rs. 15,69,769/- on 8.5.2009. In the absence of the assessee participating in the proceedings before the AO, the assessment order was passed u/s 144 read with section 147 determining total....

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....se-III, Rudrapur, on 23.4.2009 for a consideration of Rs. 4,60,000/-, out of which a sum of Rs. 2,00,000/- was received as advance. The said amount was deposited in this bank account. A copy of agreement was filed with the Ld. CIT(A) to demonstrate that Sri Bhupindra Singh agreed to purchase his plot at Preet Vihar. Since the transaction could not fructify, the assessee cancelled the agreement and paid back a sum of Rs. 2,50,000/- from his saving bank account on 23.09.2009, inclusive of Rs. 50,000 towards damages. The payment transaction is also evidenced from a copy of the assessee's bank account with Yes Bank Ltd., which is available on record. The genuineness of this Agreement has not been doubted by the AO in remand proceedings. This sh....

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....the payment by the assessee to Sri Harjeet Singh for a sum of Rs. 6,60,000/- was also through the same bank account. Both the transactions of receipt and payment of cash are evidenced from a copy of the bank statement placed on record. As such, I am satisfied that the assessee has successfully explained the source of deposit of Rs. 6,00,000/-, for which no addition is warranted. The same is directed to be deleted. 8. It is seen that the Assessing officer made an addition of Rs. 15,69,769/-, being, the peak balance on 08.05.2009. During the course of remand proceeding, the assessee contended that there were only three cash deposit entries of Rs. 2,00,000/-, Rs. 6,00,000/- and Rs. 3,40,000/-. The Assessing officer has also discussed only the....

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....terial on record, it is seen that the only addition made by the Assessing officer in the assessment order is for a sum of Rs. 15,69,769/-, being, peak cash balance in assessee's bank account on 08-05-2009. There is no discussion whatsoever in the assessment order about the loan entries in respect of which enhancement was made by the Ld. CIT(A). The Hon'ble Delhi High Court in its full bench judgment in CIT vs. Sardari Lal and Company (2001) 251 ITR 864 (Delhi) (FB) has held that the first appellate authority has no power to enhance the assessment by discovering a new source of income, not considered by the AO in the order appealed against. Similar view has been taken by the Hon'ble Delhi High Court in Gurinder Mohan Singh Nindrajog vs. CIT ....