TaxTMI 
TaxTMI 
2024 (3) TMI 1568
X X X X Extracts X X X X
X X X X Extracts X X X X
....nting to Rs. 1,55,33,800/- in its bank account No. 786111318000212 maintained with the Udaipur Urban Co-operative Bank Limited, Krishi Mandi, Udaipur during the period of demonetization 9.11.2016 to 30.12.2016 financial year 2016-17 relevant to assessment year 2017-18. As per provisions of section 139(1) of the IT. Act, the assessee was required to file its return of income on or before 30.09.2017. But no return was filed by the assessee within the prescribed time limit. Therefore, a notice under section 142(1) of the IT. Act, 1961 was issued to the assessee on 23.12.2017 by the Income Tax Officer, Ward-1(2), Udaipur and served. The notice under section 142(1) of the IT Act, 1961 was sent by speed post on 30.12.2017 and served. But the assessee opted not to file any return of income in response to notice under section 142(1) of the IT. Act, 1961. The assessee failed to make the return required under section 139(1) of the IT. Act, 1961 and has not filed a return. The assessee also failed to comply with the notice issued under section 142(1) of the IT Act, 1961. Therefore, assessment is to be completed under section 144 of the IT. Act, 1961. 3.1 Before completing the assessment, a....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e ld. AO noted that the assessee failed to file return of income in compliance to notice u/s. 142(1) of the Act 23.12.2017. The assessee failed to file the copy of dissolution deed of the firm. The assessee failed to explain the source of cash deposited into the bank account no. 786111218000212 maintained with The Udaipur Urban Co-operative Bank Limited., Udaipur. Therefore, cash deposited into the bank account of the assessee treated as unexplained money u/s. 69A of the Act for an amount of Rs. 79,54,400/- and the assessment was completed as per provision of section 144 of the Act. 4. Aggrieved from the order of the AO, the assessee preferred an appeal before the ld. CIT(A). Apropos to the grounds so raised by the assessee, the relevant finding of the ld. CIT(A) is reiterated here in below: "I have considered the assessment order, grounds of appeal, submission of the appellant and material on record. All the grounds of appeal revolve around the single issue of addition of Rs. 79,54,400/- made by the AO u/s 69A r.w.s. 115BBE of the Act. It has been contended that the appellant firm "Bhagwan Das and Sons" was dissolved in the year 2012 and the business was further carrie....
X X X X Extracts X X X X
X X X X Extracts X X X X
....nbsp; X X X X X 4.3 Regarding IFSC code YESB0UUCB08, it has been submitted that the bank was not having its own IFSC code in that year and therefore Yes Bank code was used during that period however, the account is actually held in The Udaipur Urban Co-operative Bank Ltd whose abbreviation is UUCB which having place in the IFSC code. 4.4 The appellant has also provided the copy of assessment order in the case of Mrs. Kanta Devi Nagda, Proprietor of "Bhagwan Das and Sons having PAN-AASPN3795R for the A.Y. 2017-18 assessed u/s 147 r.w.s. 1448 of the Act on 23.05.2023 wherein the issue of cash deposit of Rs. 76,54,400/- was the material issue and the AO has accepted that the deposits in the bank accounts maintained by assessee are nothing but cash sales and no addition was made. 4.5 Considering the overall discussion made above, it is apparent that- i. The appellant firm having PAN-AAEFB5256B was dissolved in the year 2012. ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....Bank Certificate from Bank that Bank Account no 786111318000212 is operated by Partnership Firm before 01.04.2012 and after 01.04.2012 is operated by Smt Kanta Devi Nagda as sole Proprietor (with the name & style i.e. Bhagwan Das & Sons), though by mistake of bank PAN No Partnership Firm remain linked with this Account. Bank also informed that PAN No Smt Kanta Devi Nagda is AASPN3795R. c) Bank also informed that aforesaid partnership firm was dissolved. 3. That Ld. AO, completed assessment under sec 144 disregarding all these evidences with addition of Rs 79,54,400/- u/s 69A treating the same as unexplained deposit as the respondent could not submit copy of dissolution deed. 4. That being aggrieved by this addition, appeal before CIT Appeal was filed. The Honourable CIT 'A' NFAC deleted aforesaid addition with following observation: "Para 4- I have considered the assessment order, grounds of appeal, submission of the appellant and material on record. All the grounds of appeal revolve around the single issue of addition of Rs. 79,54,400/- made by the AO u/s 69A r.w.s. 115BBE of the Act. It has been contended that the appellant firm "Bhagwan Das an....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ly held in The Udaipur Urban Co-operative Bank Ltd whose abbreviation is UUCB which having place in the IFSC code. 4.4 The appellant has also provided the copy of assessment order in the case of Mrs. Kanta Devi Nagda, Proprietor of "Bhagwan Das and Sons" having PAN-AASPN3795R for the A.Y. 2017-18 assessed u/s 147 r.w.s. 144B of the Act on 23.05.2023 wherein the issue of cash deposit of Rs. 76,54,400/- was the material issue and the AO has accepted that the deposits in the bank accounts maintained by assessee are nothing but cash sales and no addition was made. 4.5 Considering the overall discussion made above, it is apparent that- i. The appellant firm having PAN-AAEFB5256B was dissolved in the year 2012. ii. The business of the appellant firm was taken over and carried out by Mrs. Kanta Devi Nagda having PAN-AASPN3795R in the same name after dissolution of the appellant firm. iii. The bank account held by the appellant firm was continued by the proprietor. iv. The issue of cash deposit of Rs. 76,54,400/- was considered in the assessment order passed u/s 147 r.w.s. 144B of the Act on 23.05.2023 for the A.Y. 2017-18 in the case o....
X X X X Extracts X X X X
X X X X Extracts X X X X
....6111318000212 held in The Udaipur Urban Co-operative Bank Ltd, Krishi Upaj Mandi Branch Udaipur linked with PAN No AAEFB5256 belonging to the respondent M/s Bhagwan Das & Sons- a partnership Firm. e) It is undisputed Fact that said partnership firm was dissolved in 01.04.2012 and one partner Smt. Kanta Devi Nagda PAN No AASPN3795R continued the same business in the same name & style as Sole Proprietorship. f) It is also undisputed fact that respondent has submitted aforesaid information along with letters from Bank and VAT Cancellation certificate before AO to establish that the account is operated by Smt Kanta Devi Nagda - as sole proprietor and firm is not doing any business and PAN No of Firm remained linked with said account by mistake. The said facts were also confirmed by the Bank a third-party agency on which respondent has no control. Unfortunately, during Assessment Proceeding he could not trace the Dissolution deed. g) It is also undisputed facts that Ld AO added Rs Rs. 76,54,400/- only due to non-submission of Dissolution Deed as stated below i.e. Para 3 page 2 & 3 of Assessment Order: "The submission made by the assessee have....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... wrong the respondent assessee's reopened case u/s 148 for AY 2015-16 for cash deposit of Rs 4,40,70,000/- is completed at NIL Income vide order dated 04.05.2023 with following observation : (Page no 4) 3.4 Reasons for inference drawn that no variation is required on this issue. The assessee vide submission dated 25/05/2023 submitted that partnership firm having PAN AAEFB5256B dissolved vide Registered Dissolution Deed dated 10/07/2012 through a dissolution deed executed on 13/07/2012. As per the terms and conditions of the dissolution deed, the business of the partnership firm was taken over by one of the partner Mrs. Kanta Devi Nagda (PAN AASPN3795R), on-going concern basis. The name of the business entity viz BHAGWAN DAS AND SONS and the nature of the business viz wholesale and retail trading before and after the dissolution of Firm continued to be the same. But the constitution of business was changed from partnership to proprietorship. Further, The Udaipur Urban Co-Operative Bank Ltd. has already certified vide letter dated 20/06/2019 that Firm's PAN was continued in the case of proprietorship business, which was dissolved in the year of 2012. The le....
X X X X Extracts X X X X
X X X X Extracts X X X X
....pport of the oral arguments, a paper book filed containing following documents/records. S. No. Particulars From To 1 Written submission 1 13 2 Assessment Order for AY 2015-16 14 13 3 Dissolution Deed 19 19 4 Letter from UUCB Dated 31.1.2018 20 20 5 Letter from UUCB Dated 20.06.2019 21 21 6 VAT Cancellation Certificate 22 22 7 Assessment Order Smt Kanta Devi Nagda 23 27 8 Written Submission before AO-1 28 29 9 Written submission before AO-2 30 33 10 Penalty order Asst Year 2017-18 34 35 10 CIT A Order 36 43 11 Assessment order 2017-18 44 46 8. We have heard the rival contentions and perused the material placed on record. The brief fact of the case is that the assessee firm "Bhgwan Das and Sons" was dissolved in the year 2012. The said partnership firm business was carried on by Mrs. Kanta Devi Nagda in her Individual capacity in the name of Bhagwan Das and Sons. The firm was already dissolved in the year 2012, but in the assessment proceeding the assessee could not file the copy of the dissolution deed the assessme....