2024 (6) TMI 922

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....tset, I note that there was a delay in filing the appeal by the assessee for 2 days only. Considering the length of delay in filing the appeal, the Ld. DR did not raise any objection if the delay is condoned. Accordingly, I condone the delay and proceed to adjudicate the issue raised by the assessee on merit. 3. The assessee in the ground of appeal has challenged the validity of the assessment framed u/s 147 r.w.s. 143(3) of the Act, stating that the same have been initiated merely on the reasoning that there was cash deposit in the bank account of the assessee. As per the AR, the amount of cash deposit in the bank account does not represent ipso-facto as the income of the assessee. Therefore, the proceedings have been initiated by the AO ....

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....of property, sale proceeds of household items or any other receipt which is not liable to tax. But the controversy arises how to establish the fact that the cash deposited in the bank account does not represent the income of the assessee in the absence of any return of income filed by the assessee u/s 139(1) of the Act. As such, I am of the opinion that the AO, in the absence of any return filed by the assessee, cannot draw any inference about the justification for the source of cash deposit based on documents. Regarding the transaction being cash deposits carried out by the assessee, there is no mechanism available with the AO except to initiate the proceeding u/s 147 of the Act. For initiating the proceedings u/s 147 of the Act, the AO ha....

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....e by him and out of cash withdrawal from the bank account. Therefore, the Ld. AR contended that no addition is warranted. 10. On the other hand, the Ld. DR vehemently supported the order of the authorities below. 11. I have heard the rival contentions of both the parties and perused the materials available on record. On perusal of the cash book and the bank statement available in paper book, I note that there were sufficient withdrawals from the bank account in cash prior to the deposit of cash in the bank except the source of cash shown in the cash book for Rs. 2,75,000/- and Rs. 1,75,000/- dated 01/08/2008 and 11/08/2008 aggregating to Rs. 4,50,000/- only. Furthermore, the revenue has not brought anything on record justifying that the w....