2022 (12) TMI 1345

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....he Income-Tax Act, 1961. Whereas, in ground nos. 3, 4, and 5, the assessee has challenged the merits of the addition made of Rs.49,85,000. 4. Briefly, the facts are, assessee is a resident individual and derives income from agriculture. For the assessment year under dispute, the assessee did not file any return of income under Section 139(1) of the Act. Subsequently, the Assessing Officer received information indicating that as per individual transaction statement for financial year 20091-10, the assessee had deposited cash amounting to Rs.96,60,000 in two savings banks account with the Bank of Rajasthan and Union Bank. Based on such information, the Assessing Officer formed an opinion that income chargeable to tax in the year under cons....

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....ed the assessment. He submitted, even CIT has also granted approval mechanically without proper application of mind. Thus, he submitted, reopening of assessment is invalid. As regards the merits of the addition made, learned counsel submitted, the assessee had received an amount of Rs.25,20,000 towards sale of land. Another amount of Rs.12,00,000 was withdrawn from Union Bank of India and Rs.10,70,000 was the opening cash balance available with the assessee. He submitted, without properly appreciating assessee's claim, the Assessing Officer partly accepted the source of cash deposits while adding back the balance amount. 7. Drawing my attention to copy of the cash flow statement, a copy of which is placed at page 12 of the paper book, le....

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....ly initiated proceedings under Section 147 of the Act. In so far as the validity of approval granted under Section 151 of the Act, I do not find any deficiency in such approval. Therefore, I do not find any merit in ground no.2. Accordingly, the ground is dismissed. 10. In so far as the merits of the issue is concerned, in course of assessment proceeding, the assessee had explained the source of cash deposits as under: • Rs.25,20,000 advance received from a party towards sale of land • Rs.12,00,000 withdrawn from Union Bank of India on 19.02.2018 and 17.05.2018; • Rs.10,70,000 opening cash balance as on 01.04.2007; • Rs.7,30,000 withdrawn from ICICI Bank; • Rs.3,66,000 out ....