AI Drafter 
TaxTMI 
TaxTMI 
2023 (7) TMI 744
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....ssessee has assailed the impugned order on the following grounds of appeal before us: "1. The ld. Assessing Officer erred in law as well as in fact while making an addition of Rs. 10,01,500.00 on account of cash deposit in bank. Further, the first Appellate Authority (CIT, Appeals) also erred in law by sustaining the addition made by the A.O, the same is bad in law and is liable to be deleted. 2. The appellant reserves the right to add, amend, or alter any ground or grounds at the time of hearing." Also the assessee has raised additional grounds of appeal which reads as under: "Additional Ground No.1 1. On the facts and circumstances of the case and in law, notice u/s. 148 dt. 30-3-17 issued by ITO-4(3....
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....47/148 would be invalid, bad in law and hence, is liable to be quashed." As the additional grounds of appeal raised by the assessee company before us involves questions of law based on the facts available on record, therefore, the same are admitted by relying on the judgment of the Hon'ble Supreme Court in the case of National Thermal Power Company Ltd. Ltd. Vs. CIT (1998) 229 ITR 383 (SC). 2. Succinctly stated, the case of the assessee was reopened by the A.O vide notice issued u/s. 148 of the Act dated 30.03.2017 for the reason that though the cash deposits of Rs. 20.03 lacs were made by the assessee in his bank account with Axis Bank Ltd., Branch : Opp. New Jeevan Bima Marg, Pandri, Raipur but no return of income was filed by him. ....
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.... Ld. AR that though proceedings u/s. 147 of the Act were initiated in the case of the assessee for the reason that cash amounting to Rs. 20.03 lacs was deposited in his bank account but the same was factually incorrect. Carrying his contention further, it was submitted by the Ld. AR that the assessee during the year under consideration had made cash deposits of Rs. 10,01,500/- in her bank account. On the basis of the aforesaid facts, it was the claim of the Ld. AR that now when the very basis for initiation of proceedings u/s. 147 of the Act was factually incorrect, therefore, neither the "reasons to believe" nor approval granted by the Pr. CIT u/s. 151(1) of the Act without application of mind could be sustained. 9. On merits, the Ld. A....
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....e with the Income Tax Department, acted upon the information about cash deposits of Rs. 20.03 lacs (supra) in the assessee's bank account, therefore, we are of the considered view that there were sufficient reasons with him to arrive at a bonafide belief on the basis of material available on record that the income of the assessee who had not filed her return of income for the year under consideration had escaped assessment u/s. 147 of the Act. 13. In so far the reliance placed by the Ld. AR on the judgment of the Hon'ble Supreme Court in the case of Raymond Woollen Mills Ltd. Vs. Income Tax Officer & Ors (1999) 236 ITR34 (SC), the same is not only found to be distinguishable on facts but in fact supports the validity of the reopening of ....
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....hat income of the assessee chargeable to tax had escaped assessment. Thus, the additional grounds of appeal Nos. 2 & 3 raised by the assessee are dismissed in terms of our aforesaid observations. 14. Apropos the merits of the case, it was the claim of the Ld. AR that the cash deposits in the bank account of the assessee were sourced out of the withdrawals made by her from the amount of "Meher" which was received by her at the time of her marriage and was credited in her bank account; as well as out of the personal savings that were accumulated by her over the years. As the assessee had neither before the lower authorities nor before us been able to successfully establish that the cash withdrawals made from her bank account were utilized ....