TaxTMI 
TaxTMI 
2025 (7) TMI 873
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..... 12,17,270/-. The assessee at the relevant time was an authorized dealer of Honda since 2012. According to the AO, he has received an information that assessee has deposited a sum of Rs. 19,15,47,805/- in its bank account with Indusind Bank. Therefor e, he recorded the reasons for re-opening the assessment. The reasons recorded by the AO read as under : "1. M /S Raj Autos having PAN AANFR8138F has filed its Return of Income declaring Income amounting to Rs. 12,17,270/- on 15.09.2016. Its case was selected under High Risk Transactions Information uploaded on Insight Portal. From the perusal of ITBA, it is established that the assessee has filed its return of income for the A.Y. 2016-17. (No scrutiny assessment was done in this case) 2. From the perusal of E-filing portal information received in this office, it is revealed that the assessee has filed its ITR, and has made cash deposits in its Current Bank Account Number 200998981774 with Indusind Bank Limited amounting to Rs. 19,75,47,805/- The details of the transaction made by the assessee are as under: Name of assessee Name of bank F.Y. Amount of transaction M/s Raj Autos Indusind Bank Limited ....
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....for issuance of notice u/s 148 of the Income Tax Act, 1961 for the Assessment Year 2016-17." In case you wish to file an objection regarding the same, you may do so within time given for response for this notice. NOTE: Please furnish all the details in above mentioned format. Please furnish the necessary documentary evidence to support your claim. Also, you are kindly requested to reply within the time given in notice u/s 142(1) of the Income-tax Act, 1961, failure to which the penal proceeding may be initiated for noncompliance. In case the reply or the documents furnished are in regional language, then please submit the English translation also." 4. The AO, thereafter, passed assessment order on 29.03.2022. He made an addition of Rs. 16,15,47,810/-. 5. In appeal to the CIT(A), this addition on quantum has been deleted but re-opening has been upheld. 6. The Revenue in its appeal is challenging this deletion of Rs. 16,15,47,810/- whereas assessee in its Cross Objection challenging the re-opening of assessment. 7. With the assistance of ld. Representative, we have gone through the record carefully. Since it is assessment year 2016-17, therefore, Section....
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....essing Officer issued notice u/s.143(2) on 01.02.2022 and subsequent to that he further issued notice u/s.142(1) on 08.03.2022 and again on 15.03.2022. The assessee, other than submission of the belated return against the notice u/s.148, submitted its replies on 21.03.2022, 22.03.2022 and 23.03.2022. In such reply, the assessee claimed that the primary issue for the reopening of the case by the Assessing Officer by taking the deposits in the Induslnd Bank Ltd. account maintained by the assessee for Rs. 19,75,47,805/- was a wrong information but actual cash deposit made in such account for the Financial Year 2015-16 was Rs. 10,14,63,750/-. The assessee also, claimed that the source of such deposit was a sale proceeds of two wheelers of Honda Brand. It also disclosed that the total turnover during the year was Rs. 16,31,36,937/- which not only included the sale of two wheelers but also included the sale of accessories, spares, oils and lubricants, old vehicles and miscellaneous scrap. They claimed before the Assessing Officer that the cash deposit actually made in the Induslnd Bank account was around 62.19% only. The Assessing Officer, however, found that the late reply made by the a....
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....the merit of the case whatsoever. It is well established that the assessee is an authorized dealer of Honda selling whole range of two wheelers of Honda Brand and its business location is at Patiala. In the trading account the assessee claimed that there was opening stock of vehicles of Rs. 1,13,52,526/-. New vehicles were purchased for Rs. 13,93,84,411/- against which direct sales of new vehicles were reported in the audited accounts for Rs. 14,74,93,681/- and vehicles worth Rs. 1,11,31,440/- was disclosed as closing stock. The assessee, time and again, claimed that the two wheelers being mostly priced at below Rs. 50,000/-, the sales were made through cash and such collected cash was deposited in the bank account certain receipts were also made through other modes other than cash which is very apparent from the statement of bank account of the Induslnd Bank. It further submitted that the Induslnd Bank account was not at the only account maintained by it, it had further bank account with State Bank of India and another account with Punjab National Bank and these accounts were duly disclosed in the Balance sheet of the assessee firm. 3.5 Under the facts and circumstances o....