TaxTMI 
TaxTMI 
2024 (6) TMI 207
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....voking provisions of section 69A of the Act with reference to transactions already recorded in the books and without disputing the correctness of books u/s 145 of the Act. 3. The Ld. CIT(A)-NFAC erred on facts and in law in confirming addition of Rs. 16,18,317/- u/s 69A in respect of cash deposited in the regular bank accounts. 2. The background facts leading to present appeal, as culled out from orders of lower-authorities, are such that the assessee-individual is engaged in the business of retail trading and commission agent of mobile recharge vouchers. For the AY 2013-14 under consideration, the assessee filed original return u/s 139(1) on 22.09.2013 declaring a total income of Rs. 2,17,660/-, turnover of Rs. 64,87,256/- from business and commission of Rs. 1,38,564/- from mobile recharge vouchers of Vodafone. Subsequently, the AO, on receipt of an information from DDIT (Inv.) Ujjain vide letter dated 13.02.2020 showing that the assessee has made unexplained deposits of Rs. 16,18,317/- in bank a/cs with HDFC Bank, Ratlam and ICICI Bank, Ratlam, re-opened assessment u/s 147 through notice u/s 148. The AO also issued statutory notices u/s 143(2)/142(1) asking the assess....
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....gs made by AO in Para No. 2 and 4 of assessment-order. Therefore, even in absence of the copy of reasons with assessee, it can be safely discerned that the only reason of re-opening assessee's case was the AO's belief that the excess deposits of 16,18,317/- were not explained by assessee and the same had escapement. 5. Having explained thus, Ld. AR carried us to various documents filed in the Paper-Book. Firstly, he carried us to the audited financial statements of M/s Gayal Traders (proprietorship concern of assessee) filed by assessee to Income-tax Department with return of income, copy at Page No. 4-17 of Paper-Book. Ld. AR referred Page No. 16 where a schedule of the audited financial statements titled "Cash and Bank" is filed by assessee to AO, which shows bank balance of Rs. 1,27,669/- as on 31.03.2013 (last date of the financial year 2012-13 relevant to AY 2013-14 under consideration). Ld. AR carried us to the a/c statements of different banks filed by assessee to lower-authorities and also placed in the Paper-Book, to show the break-up of the balance of Rs. 1,27,669/-: Paper Book Page No. Bank A/c Balance 66-83 HDFC Bank, Ratlam, A/c No. 17758730000027 ....
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....ssee. Ld. DR submitted that the Annexure to the notice u/s 142(1) dated 29.06.2021 referred by Ld. AR cannot be said to be the 'reason' actually recorded by AO. Without prejudice, he submitted that there is no bar in receiving information from DDIT, Ujjain and thereafter initiating action u/s 148 by AO so long the AO has considered the information and thereafter decided this case to be fit for re- opening. Hence, the assessee's pleading of illegality in AO's action in undertaking proceeding u/s 147 must be rejected and the AO's action of re- opening must be upheld. On merit of addition, Ld. DR only submitted that the CIT(A) has not given any finding on factual issue in his order, therefore he relies upon the order of AO to contend that the addition made by AO is in order. Ld. AR urged to uphold the addition made by AO on merit also. 10. In rejoinder, Ld. AR replied that the AO has made addition u/s 69A but section 69A is attracted only when the money, etc. found in possession of assessee is not recorded in books of account. Ld. AR submitted that in the present case, the impugned bank a/cs for which the AO has made addition is already recorded in audited books of assessee, then h....
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....see's books. The assessee also claims that when the impugned bank a/c is already recorded in books, how can the AO apply section 69A which is applicable only when the money, etc. "are not recorded in books"? So far as the ICICI Bank A/c is concerned, Ld. AR is very much right in submitting that the said bank a/c was opened in May, 2013 which is a fact noted by AO himself in the Annexure to notice u/s 142(1) itself; therefore ICICI Bank A/c is not relevant to AY 2013-14 under consideration. We find sufficient strength in these submissions. Ld. AR has also shown by referring to Paper-Book that the assessee has submitted relevant details/ documents in the shape of bank book, cash book, audited accounts and a/c statements of banks to AO and yet again made a sincere effort to explain the source of deposits to CIT(A). The revenue is not able to rebut, controvert or dispute the details and documents submitted by assessee before lower authorities. Looking into all these aspects, we are of the considered view that in the present case, the addition made by AO is not sustainable. We are therefore inclined to delete the same. Accepted and ordered accordingly. 14. Thus, the assessee challeng....