TaxTMI 
TaxTMI 
2023 (2) TMI 710
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....ntial justice for a decision in accordance with law. 2. Because the action is under challenge on facts & law for making addition of Rs. 19,00,000/- as unexplained cash deposited u/s 68 on the basis of assessment order u/s 143(3)/147 of the Income Tax Act for the AY 2011-12. 3. Because the action is under challenge on facts & law since CIT(A) has no power to go beyond the matter arising out of the proceedings before the AO more particularly when the separate provisions for eventuality are provided under the Income-tax Act, 1961. 4. Because the action for enhancement of addition of Rs. 19,00,000/- is being challenged on facts and law as none specific show cause notice issued by CIT(A) for enhancement of income. ....
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....e has not provided any current address to the Registry. Therefore, the appeal is taken up for hearing in the absence of the assessee and is being disposed off on the basis of material available on record. 3. It is seen from the record that the assessee has filed an application seeking condonation of delay in filing the appeal and an affidavit in support of the application is also filed by the assessee. It is stated in the affidavit that due to spread of Covid-19 pandemic, the appeal could not be filed on time. The impugned order was passed on 17.11.2019 and the order was served on 18.02.2020 to the assessee. However, the appeal was filed belatedly by the assessee on 11.09.2020. 4. Ld. Sr. DR appeared on behalf of the Revenue, opposed ....
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....ain the basis of huge cash deposited in his bank account. However, the assessee could not file the requisite details. Thus, the AO made addition of Rs.19,00,000/- and assessed the income of the assessee at Rs.1,82,680/-. 8. Aggrieved against this, the assessee preferred appeal before Ld.CIT(A) who sustained the addition and dismissed the appeal of the assessee. 9. Aggrieved against the order of Ld.CIT(A), the assessee is in appeal before this Tribunal. 10. Apropos to Ground Nos.1 to 5, Ld. Sr. DR supported the orders of the authorities below. She submitted that the assessee grossly failed to explain the source of cash deposits. She further submitted that the source of cash deposits of assessee claimed by way of additional evidence ....
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....on has been mentioned at Rs.9,50,000/-. Further, it has been certified by the joint registration authority, Palwal that amount of Rs.9,50,000/- in cash has been exchanged between the purchaser and seller in front of him on 15.02.2011. Thus, the explanation furnished by the appellant that he had received cash of Rs. 11 lacs from his wife on 25.01.2011 has been found manipulated and against the facts. Further, the appellant has furnished a receipt from Shri Ved Ram Sharma in which it has been stated that he had paid Rs. 10 lacs to the appellant on 24.10.2010 for the fabrication of truck bodies on his behalf. It is, however, noted that the said receipt could not be substantiated as the appellant had failed to furnish copy of any invoice in res....
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....n the issue of impugned addition. The issue is restored to the file of AO for decision afresh. Needless to say that the AO would give reasonable opportunity of being heard to the assessee. The AO would further verify the factum of amount of Rs.11,00,000/- received from his wife and Rs.10,00,000/- from Shri Ved Ram Sharma and decide the issue in accordance with law. Thus, Ground Nos. 1 to 5 raised by the assessee are allowed for statistical purposes. 13. Ground No.6 raised by the assessee is against the legality of re-opening of the assessment. It is stated that there was no application of mind while recording the reasons for re-opening. 14. Ld. Sr. DR drew my attention to the finding of AO wherein she has categorically stated that an ....
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....e income chargeable to tax has escaped assessment. The AO has gone through the return of income furnished by the appellant u/s 139 of the Act and considered the particulars of the income as reflected in the return of income in the light of above observations. On the basis of these facts, the AO came to" the belief that income chargeable to tax on account unexplained cash deposits have escaped assessment. Thus, it is noted that there was live link between the information in possession of the AO and belief made that income chargeable to tax has escaped assessment. The reasons recorded by AO have not been found recorded on the basis of suspicion. At the stage of formation of belief u/s 147 of the Act, it is necessary to have existence of reaso....