2026 (3) TMI 1609

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....ferred to as 'the Act') dated 09-12-2019 by the Assessing Officer, DCIT, Ward-2(1)(1), Agra (hereinafter referred to as 'ld. AO'). 2. The only effective issue on merits challenged by the assessee is the addition confirmed by the Learned CITA under section 69A of the Act in the sum of Rs 57,00,000/-. We find that the assessee had also challenged the validity of assessment on the ground that scrutiny notice under section 143(2) of the Act dated 27-8-2018 has been issued by DCIT, Central Circle, Agra who does not have jurisdiction over the assessee. 3. We have heard the rival submissions and perused the materials available on record. The return of income for the Assessment Year 2017-18 was filed by the assessee on 31-1-2018 declaring tot....

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....he assessee is that pursuant to the initial decentralization order dated 14-5-2010, the assessee's case was never centralized and hence the second decentralization order dated 29-5-2019 has got no meaning and is of no relevance. After this, on 28-8-2019, the Learned Income Tax Officer started the assessment proceedings and issued notice under section 142(1) of the Act which were duly complied from time to time. Ultimately the assessment was completed by the Learned Income Tax Officer, Ward 2(1)(1), Agra on 9-12-2019 under section 154 r.w.s. 143(3) of the Act determining the total income of the assessee at Rs 88,64,068/-, after making separate addition of Rs 57 lakhs on account of cash deposits during demonetization period by disbelieving th....

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....dingly, the short term capital gains of Rs 11,21,895/- offered by the assessee in the return was taxed on protective basis by the Learned AO while completing the assessment. This addition was upheld by the Learned CITA. 5. We find that action of the lower authorities in disbelieving the source of cash deposits is not in order. We find that the assessee had duly disclosed the sale of silver bullion in several tranches and had offered short term capital gains of Rs 11,21,895/-. There is absolutely no reason for disbelieving the same. We find that the assessee had given proof of holding of silver bullion of 131.442 kgs by disclosing the same under Income Disclosure Scheme, 2016 and paid due taxes thereon. Form No.1 filed by the assessee in ....