TaxTMI 
TaxTMI 
TaxTMI 
2025 (9) TMI 747
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....he AD despite the fact that reopening the assessment under Section 147 of the Act and consequent reassessment without complying with the statutory conditions and the procedure prescribed under the law are bad and liable to be quashed. 3. On the facts and circumstances of the case, learned CIT(A), NFAC, ITD has erred both on facts and in law in confirming the order of the AO despite the fact that reopening the assessment under Section 147 of the Act and consequent reassessment order are illegal, without jurisdiction, invalid and liable to be quashed. 4. (1) On the facts and circumstances of the case, learned CIT(A), NFAC, ITD has erred both on facts and in law in confirming the order of the AO despite that the reasons recorded for reopening the assessment does not meet the requirements under section 147 of the Act, bad in law and are contrary to the facts (i) That the learned CIT(A), NFAC ITD has erred both on facts and in law in confirming the reopening ignoring the fact that there is no live nexus between the reasons recorded and the belief formed by the assessing officer. 5. On the facts and circumstances of the case, learned CIT(A), NFAC, ITD has erred....
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....ithout prejudice to the above and in the alternative, estimation of income made by the AQ and confirmed by learned CIT(A), NFAC, ITD is ad-hoc, arbitrary, too high and unsustainable. 12. The appellant craves leave to add, amend or alter any of the grounds of appeal." 3. The Grounds of Appeal of the Revenue are as under:- "Whether on facts and circumstances of the case, the Ld.CIT(A) had erred in treating the cash deposited amounting to Rs. 1,34,88,000/- during demonetization period as cash sales without appreciating that the assessee was not able to produce day to day cash book, stock register, bank book with narration and other relevant details during assessment as well as appellate proceedings and books of the accounts of the assessee were rejected u/s 145(3) of the Act for the detailed reasons given in the assessment order." 4. Brief facts of the case are that, the assessee filed its return of income for the A.Y. 2017-18 declaring total income of Rs. 5,88,370/-. Case of the assessee was reopened under section 147 of the Income Tax Act, 1961 ('Act' for short) alleging that assessee has deposited cash of Rs. 1,34,88,000/- in his bank account during ....
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....gs there was no examination carried out by the A.O. on the issue of cash deposit during demonetization in SBN and the cash deposited during remaining period of previous year also not being verified by the A.O. therefore, the case of the Assessee was rightly reopened, thus, submitted that action of the A.O. in reopening the assessment u/s 147 of the Act requires no interference. 10. We have heard both the parties and perused the material available on record. From the perusal of the records, it is seen that the assessment in the case of the Assessee was completed u/s 143(1) of the Act and there was no examination carried out on the part of the Assessing Officer with respect to the source of such cash deposited during demonstration in SBN. Besides this, there were cash deposits during the remaining of the previous year which also remained unverified. Under these circumstances, we are not in agreement with the argument advanced by Assessee's Representative that the 'Reason to Believe' is merely based on the fact that the cash deposited in bank account. In view of above facts and circumstances, grounds of Appeal No. 2 to 5of the Assessee are dismissed. 11. The Assessee has not....
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....cash deposited during the demonetization period treating the same as sales. 14. On the other hand in Revenue's Appealin Ground No. 1, the Department challenged the action of the Ld. CIT(A) in treating the cash deposits of Rs. 1,34,88,000/- during the demonization period as cash sales without appreciating that the Assessee was not able to produce day to day cash book, stock register, bank book with narration with other relevant details either during the assessment proceedings or before the Ld. CIT(A). 15. From the perusal of assessment order, we find that the Assessee has failed to produce the copies of the sales bills and day to day stock register to establish that it had sufficient stock as and when the cash sales claim to have been made out which the cash was deposited during demonetization. It is further seen that except filing the details of the persons, the Assessee has not even produce the day to day cash books of each branch and in the audit report also, the auditor has mentioned that the Assessee has not maintained day to day stock register. In addition to the same, the books of accounts maintained by the Assessee were also rejected by invoking the provision of Sectio....