TaxTMI 
TaxTMI 
2021 (10) TMI 67
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....this is a recalled matter. 3. Facts of the case, in brief, are that the assessee is an individual and has not filed his return of income. The case of the assessee was reopened on the ground that assessee has made cash deposit of Rs. 16,10,500/- in the Bank A/c maintained with ICICI Bank Limited. Accordingly, the A.O. after recording reasons under section 147 of the I.T. Act, 1961, issued notice under section 148 on 15.03.2017. The assessee in response to the same filed his return of income declaring total income of Rs. 1,50,000/-. During the course of assessment proceedings, the A.O. asked the assessee to explain the source of deposits in the Bank A/c. It was explained by the assessee that he is running his business in the name of M/s. Bob....
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....nal by raising the following grounds : "1. That the Ld. CIT(A) has not appreciated the legal infirmity of the action of the Ld. A.O. in initiating proceedings u/s 147 and issuing notice u/s 148 without considering the facts and legal position of the case as a whole. 2. That without prejudice to ground no-1 the observations made by the Ld. A.O. are inconsistent with the factual and legal position of the case. 3. That the order passed by the Ld. A.O. deserves to be annulled as the assessment order has been passed in hurry without appreciating the legal and factual position of the case and without application of mind resulting in contradiction in observations of the Ld. A./O. That as per first page of the assessment order it has been p....
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....d from 1986 onwards he is doing the business of supplying tailoring material. He submitted that in the immediately preceding assessment year the case of the assessee was also reopened under section 147 of the I.T. Act, 1961 wherein deposit of Rs. 19 lakhs was made in the Bank A/c. The A.O. has accepted the fact that assessee is using his S.B. A/c and the deposits in the Bank A/c are out of business receipts. He submitted that no 263 proceedings have been initiated. He submitted that assessee is having only one Bank A/c and does not have any other Bank A/c. He submitted that when the assessee is doing business and his entire receipts are deposited in the only Bank A/c maintained by him, therefore, treating the deposits in the Bank A/c as une....
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.... sustained by the Ld. CIT(A) is not justified. It is also his submission that in the subsequent assessment year the case of the assessee was reopened under section 147 of the I.T. Act, 1961 on the ground that assessee has made cash deposit of Rs. 19 lakhs in the S.B. A/c and the A.O. has accepted the plea of the assessee that the S.B. A/c is used for the business transactions and no 263 proceedings have been initiated against such assessment order. 7.1. I find some force in the above submissions of the Learned Counsel for the Assessee. A perusal of the letter addressed to the A.O. shows that assessee has categorically mentioned that he is engaged in the retail trading of tailoring materials since long and his total income had never become ....