AI Drafter 
TaxTMI 
TaxTMI 
TaxTMI 
2025 (12) TMI 147
X X X X Extracts X X X X
X X X X Extracts X X X X
....e orders/communications are served on the assessee only by way of sending it digitally on the email id of the assessee. There is no physical service of the orders/notices by the department. In this context, many assessees are not aware with the intricacies and digital format in the taxation framework. In fact the bonafide assessees are sometimes unable to fulfill the requirements of law of limitation on the ground of delay because of the fact that they are ignorant about dealing with the income tax proceedings. Also, the Ld. Counsel submits that the assessee is not well conversant with the income tax law and solely depends on his counsel. In this background, I have examined the contents of the condonation application and find that the reasons for delay cannot be attributed to any malafide or deliberate conduct of the assessee, if any. That as per the direction of the Hon'ble Supreme Court the delay which is beyond 365 days will be termed as inordinate delay and anything below that is ordinate delay. However, the law of limitation is to be construed strictly and whether it is ordinate or inordinate, delay has to be well explained. At the same time in these issues a liberal and judic....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ot filed Return of Income for the year under consideration. As per information available with the office, the assessee had made investment in purchase of immovable property at Rs. 1,22,80,100/- during the F.Y 2014-15, Therefore, the capital gain arising out of the sale from the properties has not been disclosed, thus confirming that the income chargeable to tax has escaped assessment for the AY 2015-16. Thus, I have reason to believe that the income of the assessee to the tune of Rs. 1,22,80,100/- for the A.Y.2015-16 has escaped assessment within the meaning of explanation 2(a) of sec. 147 of the Act. I am therefore of the considered opinion that it is a fit case for reopening u/s. 147 of the IT Act, 1961. Hence, it is proposed to assess the escaped income and any such other income which comes to the notice subsequently during the course of assessment proceedings u/s 147 of the IT Act, 1961. For these reasons, a proposal u/s. 147 of the Act is submitted to Hon'ble CIT, Range-1, Bilaspur for according approval to issue notice u/s. 148 of the Act. Sd/- (Sujit Biswas) Income tax Officer-3 Raigarh." 6. It is discerni....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... justice that the person against whom the department with its entire machinery intends to proceed, shall have to be accorded with reasonable opportunity to prepare his defense. In such scenario, where initiation of reassessment and reasons recorded itself is without independent application of mind, perverse, arbitrary and bad in law, the act of the A.O cannot be held to be justified within the provisions of the Act. The Co-ordinate Bench of Delhi in the case of Sanjeev Kumar, C/o M/s. Raj Kumar & Associates vs. ITO Ward 2(3)(2), Bulandshahr, reported in 2023(10) TMI 1027-ITAT Delhi on the same issue of "non- application of mind" had observed and held as follows: "14. In view of foregoing discussion, I reach to a logical conclusion that the complete cash book statement clearly explains the source of cash deposit to the bank account of assessee, wherein the assessee has not only included cash receipts as salary and capital withdrawal from two partnership firms M/s Umang Beverages and M/s Mohan Oil & Cattle Feed and a cash salary from Bihar Milk Foods Pvt. Ltd. and has also reduced the amount of drawings for household expenses. The copy of return of income of wife of assessee....
X X X X Extracts X X X X
X X X X Extracts X X X X
....of the Act. It may be worth noting that the Tribunal has recorded a categorical finding that "it is clear that under the provisions of Section 68, the addition made by the Assessing Officer and sustained by the CIT (Appeals) cannot be sustained, meaning thereby that the Tribunal was of the opinion that the Assessing Officer and the CIT (Appeals) committed an error in adding the aforesaid amount in the income of the appellant-assessee under Section 68 of the Act. In view of the above, when the said income cannot be added under Section 68 of the Act and the Tribunal was not competent to make the said addition under Section 69-A of the Act, the entire order of the Tribunal stand vitiated in law Accordingly, we answer the question of law, as framed above, in favour of the appellant-assessee and against the Revenue and hold that the Tribunal was not competent to make any addition under Section 69-A of the Act and as the same was subject matter of the appeal before it." 10. Further, ITAT, "SMC" Raipur Bench in the case of Raghvendra Singh Thakur Vs. The Income Tax Officer, Ward-4(1), Raipur ITA No. 242/RPR/2025, dated 14.07.2025 on the similar facts and circumstances....
X X X X Extracts X X X X
X X X X Extracts X X X X
....her family members of assessee are also earning and contributing towards household expenses. Therefore, in my humble understanding the source of cash deposit during demonetization to the bank account of assesses is properly explained by the assessee by way of self speaking documentary evidence and explanation. Secondly, the AO has made addition u/s 69 of the Act which pertains to unexplained investments, whereas the assessee has not made any investment either in movable or any immovable property during the relevant period by way of using cash amount. The Ld. CIT(A) though has given credit of 25% of Impugned cash deposit confirming the remaining part of addition but there is no logic of this segregation. From the relevant operative part of first appellate order, I also note that the Ld. CIT(A) has upheld the part addition without mentioning any charging section and impliedly adopting section 69 of the Act in the line of assessment order. Therefore, respectfully following the proposition rendered by the Hon'ble Jurisdictional High Court of Allahabad in the case of Sarika Jain (supra). I have no hesitation to hold that the addition made by the AO by mentioning incorrect and irrele....