TaxTMI 
TaxTMI 
TaxTMI 
2024 (12) TMI 250
X X X X Extracts X X X X
X X X X Extracts X X X X
.... was observed by the Assessing Officer that the assessee has deposited cash of Rs. 16,24,600/- in Central Bank of India, Shivpuri Account No. 3180350784, out of which an amount of Rs. 14,14,600/- was deposited in cash in a single date on 11.11.2016 during the period of demonetization. The AO observed that since the assessee did not file return of income with department, cash deposits during demonetisation is abnormally high as compared to the pre-demonetized period, and the sources of these deposits are not known to department. A show cause notice u/s 142(1) was issued by the Assessing Officer to the assessee, on 27.11.2019, requiring assessee to explain the sources of deposits in her bank account. Thereafter, further statutory notices u/s 142(1) were issued by the AO during assessment proceedings. The assessee was asked by the AO to produce books of accounts, bills, vouchers etc pertaining to her business. Assessee submitted that she was running Kisan Seva Kendra at very interior area of Billaua, at Karhal Sheopur Road, which was closed in 2014, but there were some old outstanding recoverable from farmers and villagers which remained unrealised since then. The assessee was making ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....an outstanding against her but not re-pay the outstanding balance to the bank by who looked after the affair of her. Sir later on with effect 09/11/2016 demonetization scheme came in to force, therefore who looked after the affair of her inspite of deposit the amount in her bank account re-paid the loan of the bank. The Ld AO over looked the facts stated in the reply but in his body of assessment order quoted that only a afterthought and cooked up story to some cover up the undisclosed sources of cash deposit during the period of demonetization as well as other deposit during the year under consideration fully baseless and is purely only on presumptions and surmises and also not reliable in case of the assessee. Sir as per direction, who looked after the affair of her reply has been submitted to the Ld. AO in the absence of the assessee who stay at that time in USA. After received the reply, the Ld. AO has refer the matter to the Hon'ble JCIT under section 144A of the Income Tax Act 1961 for obtaining the directions in disregards. The Hon'ble JCIT has not provided any opportunity to be heard before issue of direction in proceeding under section 144A of the Act The Hon'ble JCIT issu....
X X X X Extracts X X X X
X X X X Extracts X X X X
..... Counsel Shri Rajendra Sharma, Advocate at the outset stated before the Bench that the assessee has already migrated to USA and was not having any business income in the year under consideration. It was stated that the assessee was only having interest income which was below taxable limits, and hence no return of income was filed. It was submitted that there were some old outstanding's recoverable from farmers, which were recovered from the farmers etc. in cash, and was deposited in cash in the bank account. It was the say of the ld. Counsel for the assessee that perusal of the assessment order will reveal that the assessee had not filed return of income as the income of the assessee was below taxable limit. It was submitted that the additions were made by the AO u/s. 69A with respect to cash deposit in the bank account which is a disputed liability, and the assessee has challenged the additions as were made by the AO before the ld. CIT(Appeals) as well as before the Tribunal. It was also submitted that the assessee has meagre interest income, which is much below the taxable limit and hence, the assessee has not filed return of income because the assessee is not liable to file the....
X X X X Extracts X X X X
X X X X Extracts X X X X
..../-" 7.2 This entire addition is disputed tax liability as the assessee has raised grounds of appeal before ld. CIT(A) as well before ITAT, challenging this entire addition of Rs. 16,24,600/- as were made by the AO both on legal ground as well on merits. There is no other income assessed apart from this addition of Rs. 16,24,600/- as is discernible from assessment order. Relevant extract is reproduced earlier in this order. Thus, the is no admitted tax liability. So far admitted income is concerned, it is admitted that the assessee has income from interest which is much below taxable limits, and hence no return of income was filed nor there was any liability to deposit advance tax as per the provisions of the 1961 Act. The relevant ground of appeal (Ground No. 1) before ITAT is reproduced hereunder:- 1) "The Ld. CIT(A) erred in Non-Admitting the Appeal Filed by the Appellant with the reason that " The appellant has not offered YES comment at Sl. No. 09 of Form 35" further with the comment " Since the appellant has not filed the Return of Income as well not paid an amount equal to the amount of advance tax which was payable by it, present appeal is not liable to be admitted" witho....
X X X X Extracts X X X X
X X X X Extracts X X X X
....mitted as the assessee has not filed return of income and also the assessee has also not paid an amount equal to the amount of advance tax which was payable by her. The assessee has claimed that the amount deposited in cash in her bank account represents old recoveries from the farmers/villagers and there is no income during the year under consideration, as the assessee has shifted to USA and the business has been closed down since 2014. In any case, on perusal of the assessment order, it is clearly discernible that there is no admitted income by the assessee and the addition as was made by the Assessing Officer of Rs. 16,24,600/- which is also the assessed income in the hands of the assessee, is subject matter of dispute and challenge by the assessee before the ld. CIT(Appeals) as well as before Tribunal. Thus, the assessee has never admitted this addition of Rs. 16,24,600/- to be her income, and under these circumstances, there is no advance tax liability arising on such disputed income keeping in view the claim of the assessee that she was not having any other income in India except that there was interest income which was below matter. In any case, the AO has not brought to tax....