TaxTMI 
TaxTMI 
2026 (9) TMI 1875
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....th section 144B of the Income-tax Act, 1961 ("the Act"). 2. The brief facts of the case are that the assessee filed the return of income for Assessment Year 2016-17 on 27.03.2018 declaring total income of Rs. 23,41,800/-. The case was selected for limited scrutiny u/s 143(3) of the Income Tax Act 1961. Notice u/s 143(2) issued ITO-1 Harda, for limited scrutiny on 28-09-2018 on following issue (i) Cash in hand (ii) Share Capital and the assessment was completed on 27.12.2018 by accepting the return of income of the assessee filed. Thereafter notice u/s 148 issued on 31/03/2021 by ITO-Harda for the same assessment year after recording the reasons for reponing for the assessment year u/s 147 as under: - 1.During the financial year,....
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....ame issue. 1.1 The re-opening of assessment is bad in law since there is no failure on the part of the assessee to disclose fully and truly on material facts. 1.2 The re-opening of assessment is bad in law sice the issue of the notice by the ITO is without jurisdiction. The assessment be annulled and/or cancelled. 2. The Ld. CIT(A) NFAC has erred in upholding the addition of Rs. 37,01,999/- without considering the submissions made and documents filed before him. The addition may please be deleted. 3. It was proved before the Ld. Lower authorities that the books are audited and the cash balance increased because of day to day business transaction. The addition is uncalled for and hence be deleted. ....
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.... material available on record. The first issue raised by the assessee relates to the validity of reopening of the assessment under section 147 of the Income-tax Act, 1961. From the facts available on record, it is undisputed that the assessee had originally filed its return of income for Assessment Year 2016-17 declaring total income of Rs. 23,41,800/-. The return was selected for limited scrutiny under section 143(3) on the issues of cash-in- hand and share capital. Notice under section 143(2) was issued on 28-09-2018 and notice under section 142(1) was also issued during the course of the original assessment proceedings. The assessment under section 143(3) was thereafter completed on 27- 12-2018. 10. From the assessment records, it is ....
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....sing Officer has not brought any material on record to demonstrate that the opening cash balance of Rs. 15,43,216/- was generated or received by the assessee during the previous year relevant to Assessment Year 2016-17. Merely because the opening cash balance was not supported by a separate document during the reassessment proceedings, the same cannot, by itself, establish that the amount represented unexplained income pertaining to the relevant previous year. The Assessing Officer has also referred to the movement in the cash balance, namely, the opening balance of Rs. 15,43,216/- and closing balance of Rs. 52,45,215/-. However, the mere increase in the closing cash balance, without examining the individual cash receipts and payments recor....