2025 (9) TMI 98

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....4B of the Act for Assessment Year 2015-16. 2. The assessee has raised following grounds of appeal:- 1. "The Ld.CIT(A) erred in not deciding that 1. The Ld. Authority has erred in re-opening of the assessment, 2. not providing the reasons recorded u/s 148(2) and sanction of the competent authority, 3. Rejecting the ITR, 4. completing the assessment u/s 144, 5. Making huge additions of Rs. 1,83,65,000/- u/s 69A and 6. Taxing u/s 115BBE." 3. In Ground of appeal No.1, the assessee has challenged the re-opening of the assessment passed on the suspicion and in Ground of appeal No.2, the assessee has challenged the action of the AO in not supplying the copy of the reasons recorde....

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.... AO has not treated it valid for the reasons that it was filed after 11 months of the issue of notice u/s 148 of the Act. AO further observed that the return was e-verified on 04.03.2022 thus, there remained very less time for the completion of assessment and therefore, the return filed was rejected. The necessary copy of acknowledgement of ITR is placed in Paper Book page 1 and submits that the return filed was well before the completion of assessment and therefore, the same deserves to be accepted. He further submits that there is no power under the Act to the AO to reject the income tax return filed through e-filing portal. With respect to Ground No.4, Ld.AR submits that the return was filed by the assessee in respect to notice u/s 148 o....

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....me provided in the notice issued u/s 148 of the Act. Under these circumstances, the AO treated the return filed on 20.02.2022 and validated on 04.03.2022 as invalid return. Since the return was held as invalid, there is no requirement of issue of notice u/s 143(2) of the Act. In view of these facts, we find no substance in the arguments of Ld.AR. Therefore Ground of appeal Nos. 2, 3 & 4 raised by the assessee are dismissed. 9. Now, Ground of appeal No.5 raised by the assessee taken on the merits of the additions. 10. Before us, Ld.AR of the assessee submits that there were cash deposited in the bank account maintained by the assessee with Axis Bank bearing Account No.911010067263639 wherein total cash of INR 1,83,65,000/- was deposite....

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....tatement wherein the withdrawals made from time to time and the deposits in cash were date-wise arranged. According to the said fund flow statement, there was no deficit of funds as and when the cash was deposited in the bank accounts. These facts are self-explanatory with respect to the bank statement vis-a-vis fund flow statement and therefore, require no verification on the part of the AO. Once it is established that there are sufficient funds available with the assessee out of the cash withdrawals which were re-deposited in the bank account, no addition is required to be made for the same. Further, assessee claimed INR 1,53,36,000/- as brought forward from earlier years and shown as opening balance in fund flow statement thus, the same ....