TaxTMI 
TaxTMI 
2022 (6) TMI 886
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....rcumstances of present case, statutory provisions, established principles of law and principles of natural justice and thus need to | be quashed. 2. That on the facts and circumstances of the case and the provision of law the Ld. CIT(A) 1 has failed to appreciate that the initiation of proceedings u/s 147/148 is illegal and bad in law and consequently the assessment framed being illegal requires to be quashed. 2.1 That on the facts and circumstances of the case and in law the Ld. CIT (A) erred in sustaining the addition of Rs. 10,72,000/- made u/s 69A on account of cash deposited in Bank Account whereas the cash deposited is fully explained. 2.2 Alternatively and without prejudice to above the appellant disputes the quantum of addi....
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....e carried the matter before the learned CIT(Appeals), who also after considering the material available on record dismissed the appeal and sustained the addition. Now the assessee is in appeal before this Tribunal. 3. Ground nos. 1 & 2 are against legality of the reopening of the assessment. 4. Learned counsel for the assessee vehemently argued that the reopening is wholly illegal and unjustified on account of the fact that the basis of reopening was that assessee did not file return of income. However, the assessee had duly filed his return of income and the fact of the same was brought to the notice of the learned CIT(Appeals) by filing the written submissions. He submitted that since the foundation of reopening of the assessment is bas....
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....A and 69C of the Act respectively. 8. Apropos to addition of Rs. 10,72,000/- the learned counsel for the assessee submitted that the authorities below have not considered the fact in right perspective. The authorities below have not given set off of the opening balance and the cash withdrawn from the bank account. He further contended that before the learned CIT(Appeals) it was categorically stated that the assessee had withdrawals from his bank account and this amount was subsequently deposited. However, both the authorities have not accepted the explanation offered by the assessee. He submitted that the Assessing Officer has not brought any adverse material regarding withdrawal of cash from the bank account which was available with the a....
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....ase and the explanation tendered by the AR, the order of the AO appears to be reasonable and accordingly the addition of Rs. 10,72,000/- made by the AO is hereby confirmed." 11. From the above finding it is clear that the learned CIT(Appeals) has failed to advert to the explanation offered by the assessee regarding the source of cash deposit. The learned CIT(Appeals) being the first appellate authority ought to have considered the submissions of the assessee regarding source of cash deposit. Before me the assessee has filed bank statement. There from, it is clear that there were cash withdrawals as well as cash deposits. Before the assessing authority the assessee has categorically stated that he had withdrawn cash of Rs. 8,25,900/- and R....
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.... the same. Under these facts he contended that gross miscarriage of justice has been caused to the assessee. 14. On the contrary learned DR heavily relied on the orders of the authorities below. He contended that assessee was required to explain the source of expenditure as incurred by him. 15. I have heard the learned representatives of the parties. I find that the learned CIT(Appeals) has decided the issue by observing as under: "4.2 The next issue is regarding the addition of Rs. 5,81,000/- made by the AO on account of unexplained expenditure. As per the AIR/CIB/26AS information available in ITD system, it was noticed that the assessee had made payment of Rs. 5,81,000/- through credit cards. Neither any submission was furnished in th....