TaxTMI 
TaxTMI 
2025 (6) TMI 701
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....tion that the assessee had deposited cash of Rs. 49,18,500/- in her saving bank account with Bank of India, Vatva Branch, Ahmedabad during the F.Y. 2010-11. As no return of income was filed by the assessee the AO had reason to believe that income of the assessee chargeable to tax had escaped assessment. Therefore, proceeding u/s 147 of Income tax Act, 1961 (in short 'the Act') was initiated by the AO after recording the reason and a notice u/s 148 of the Act issued on 28.03.2018. There was no compliance by the assessee to the said notice as well as to the subsequent notices issued u/s 142(1) of the Act. The AO, therefore, completed the assessment ex-parte u/s 144 r.w.s 147 of the Act on 21.12.2018 at total income of Rs. 50,13,790/-.....
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.... On the facts and in the circumstances of the case as well as in law on the subject the Learned Assessing Officer has heard in reopening assessment under section 147 by issuing notice under section 148 of the Income Tax Act 1961, 5. Ms. Foziya Saiyed, the ld. A.R. of the assessee submitted that the assessee being a lady was not conversant with the procedure of Income-tax proceedings, hence, no compliance could be made by her before the AO in the course of assessment proceeding. However, proper compliance was made before the ld. CIT(A) and the source of cash deposits in the bank account was duly explained. It was explained that the assessee was having a proprietary business of trading in clothes and that the cash deposits in the bank accoun....
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....ect of trading activity. No bills and vouchers and any other documentary evidences were brought on record in respect of the purchases and the sales as made by the assessee. The ld. Sr. DR submitted that the assessee had now taken a totally different stand to explain the cash deposits without bringing on record any documentary evidence. He also supported the reopening the case of the case and submitted that the AO had made inquiry from the assessee before reopening the case but no compliance was made by the assessee. 7. We have considered the rival submissions. The Ground No .- 1 pertains to not allowing sufficient opportunity of being heard by the ld. CIT(A). We do not find any merit in this ground as the CIT(A) had not only allowed suffic....
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....the trading activity carried on by the assessee. The ld. CIT(A) had examined the cash book of the assessee and found that all the sale proceeds were in round figures and no details of purchases, indirect expense and administrating expenses were appearing in the cash book. He, therefore, rejected the explanation of the assessee and confirmed the addition as made by the AO. Before us also no evidence has been brought on record in support of the trading activity carried on by the assessee. A copy of the cash book filed before the CIT(A) is appearing in the paper book filed by the assessee and it is found that the cashbook contains entries for sales only and no transaction in respect of purchases or any other expense is recorded therein. Furthe....
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....aken an additional legal ground on the issue of reopening u/s 147 of the Act. The contention of the assessee is that the AO could not have derived the satisfaction that the income had escaped assessment only on the basis of information in respect of cash deposits in the bank accounts of the assessee. A copy of the reason recorded by the AO has been brought on record in the paper book. It is found therefrom that after getting the information regarding cash deposits in the bank account the AO had sent a query letter to the assessee to which no response was made. Further, the AO had also considered the fact that no return of income for AY 2011-12 was filed by the assessee. Considering the information as received as well as these facts the AO h....