TaxTMI 
TaxTMI 
2025 (6) TMI 35
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.... two-fold; (a) The ld. CIT(A) has erred in upholding the re-opening of assessment; (b) The ld. CIT(A) has erred in confirming the addition of Rs. 48,10,000/- which was added by the AO with the aid of Section 69 of the Income Tax Act. 2. The assessee thereafter moved an application for additional ground of appeal. It was contended that the assessment order was not bearing document identification number, therefore, it is bad in the eyes of law. However, at the time of hearing, ld. Counsel for the assessee did not press this ground of appeal, hence rejected. 3. The brief facts of the case are that assessee has filed his return of income on 21.03.2013 declaring total income of Rs. 1,71,700/-. It came to the notice of AO that assessee has depo....
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....adam/Sir The facts of the case, in brief, are that return of income for AY 2012-13 was originally filed on 21.03.2013. Subsequently, re-assessment proceedings U/s 147 were initiated U/s 148 and assessment was framed on total income of Rs. 5013563/- vide order dated 17/12/2019 making thereby an addition of Rs. 4810000/- on account of cash deposits in bank accounts and Rs. 31863/- being interest. The assessment so framed and additions made are objected to on the following grounds. 2. Before issue of notice, the Ld. AO issued inquiry letter, referred to in the assessment order. Since there was no pendency of assessment before issue of notice without obtaining the approval of competent authority and hence inquiry letter issued is bad in law....
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....operation and remained disturbed for looking after the daughter who remained with the assessee. Due to these disturbing facts, the assessee had to close the business and the machinery and stock in the shop were sold. During the course of assessment proceedings, the assessee was asked to submit cash- flow statement to prove the source of cash deposits made during the year. Since the assessee was not aware of accountancy system, an accountant prepared the same. As the assessee was not aware of the facts mentioned in the cash-flow statement, the same was submitted as prepared by the accountant. However, there were some discrepancies, the AO required the assessee to prepare cash book which was got prepared form chartered accountant on the basis....
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....sessee remained at Rs. 524400/- (after deposit and personal expenses.) 23.06.2011 ICICI 500000.00 Out of cash in hand available at Rs. 524400/- as above. Further, the assessee sold two plots for Rs. 443500/- each on 11.06.2011 belonging to his brother, Rajesh (Residing in Germany) on the basis of power of attorney. Copies of sale deeds are enclosed as annexure "B". These amounts have been shown in the cash- book as gift received from brother. An affidavit to the effect that he made gift of these amounts and did not receive any sum out of sale proceeds is enclosed as annexure "C". The Ld. AO did not allow any credit for availability of cash-in-hand out of earlier withdrawals and sale proceeds of Rs. 887000/- as above. After deposit of th....
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.... 1593100.00 Less :- Deposits & Personal Exps 119500.00 Balance 1473600.00 22.09.2011 ICICI 330000.00 Prior to this, the assessee withdrew Rs. 500000/- from SBI remained with the and the cash assessee after deposit of this amount and personal expenses as under :- Opening Balance 1473600.00 Withdrawals 500000.00 1973600.00 Less :- Deposits and Personal Exps 337400.00 1636200.00 28.09.2011 ICICI 325000.00 Out of above cash in hand. Further, a sum of Rs. 1300000/- was given to wife as per settlement for divorce for her maintenance. Thus, the cash of Rs. 1636200/- - 325000 - 1300000/- = 11200/- remained with the assessee. 02.01.2012 740000.00 Prior to the deposit of ....
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.... was deposited in the last year i.e. 16.12.2010 and it was withdrawn on 20.04.2011, just before the deposit of Rs. 5 lacs in the ICICI Bank in the month of May, 2011. Similarly, assessee has explained the deposits on 23.06.2011. A perusal of all these details would indicate that assessee has sufficient source of money. The AO has not pointed out any specific defect in the source. His reasons are only with regard to certain discrepancies in preparing the Cash Flow Statement. We would appreciate the findings of the AO if he has pointed out defects in the FDRs maintained by the assessee or sale of land by his brothers and other relatives and the return of money to those persons, but no aspects have been examined by the AO. He simply incorporat....