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2019 (10) TMI 1404 - AT - Income TaxReopening of assessment u/s 147 - unexplained cash deposits - assessee could not explain the source of cash deposited in the bank account of M/s Shree Radha Commodities Services from whom the assessee had received the impugned amount during the year under consideration - HELD THAT - In the instant case, the Ld. CIT(A) categorically stated that for the A.Y. under consideration assessment in the case of M/s Shree Radha Commodities Services was reopened under section 147 of the Act under identical facts and the reassessment was completed under section 143(3) read with section 147 of the Act vide order dt. 23/03/2016, however no addition on account of cash deposits were made and the A.O. came to the conclusion after verifying the books of accounts that the cash deposited was found to be explained. The said observation of the Ld. CIT(A) was not rebutted. In the present case when the cash deposited in the bank account of M/s Shree Radha Commodities Services was accepted and considered to be genuine while framing the assessment under section 143(3) r.w.s 147 of the Act vide order dt. 23/03/2016 then the amount received by the assessee through banking channel out of the said cash deposited in the bank account of M/s Shree Radha Commodities Services cannot be considered as unexplained or non genuine in the hands of the assessee. We therefore do not see any valid ground to interfere with the findings given by the Ld. CIT(A).
Issues Involved:
1. Deletion of addition of ?2,26,30,000/- made by the Assessing Officer (A.O.) on account of cash credit received from M/s Shree Radha Commodity Services. 2. Cross Objection filed by the Assessee. Detailed Analysis: 1. Deletion of Addition of ?2,26,30,000/-: The primary issue in the appeal was whether the CIT(A) was justified in deleting the addition of ?2,26,30,000/- made by the A.O. on account of cash credit received from M/s Shree Radha Commodity Services. The A.O. had observed that the assessee failed to explain the source of cash deposits made in the bank account of M/s Shree Radha Commodity Services, from which cheques were issued to the assessee. The A.O. issued a notice under section 148 of the Income Tax Act, 1961, and during the assessment proceedings, the assessee was unable to produce satisfactory evidence to prove the source of the cash deposits. The CIT(A), however, deleted the addition by considering the following points: - The assessee firm provided a confirmed copy of the account of M/s Shree Radha Commodity Services, showing the complete address and PAN number. - The bank statements of both the assessee firm and M/s Shree Radha Commodity Services were submitted for verification. - The CIT(A) noted that the A.O. failed to bring any material on record to suggest that the cash deposits represented unaccounted income of the assessee firm. - It was observed that the cash deposits in the bank account of M/s Shree Radha Commodity Services were accepted as explained in the assessment under section 143(3) read with section 147 of the Act for the same assessment year. - The CIT(A) concluded that once the cash deposits in the bank account of M/s Shree Radha Commodity Services were accepted as genuine, the outgoings from the same bank account could not be doubted. The Tribunal upheld the CIT(A)'s decision, noting that the A.O. had accepted the cash deposits in the bank account of M/s Shree Radha Commodity Services as genuine during the assessment, and therefore, the amount received by the assessee through banking channels could not be considered unexplained or non-genuine. 2. Cross Objection Filed by the Assessee: The assessee filed a cross objection, but during the proceedings, the Ld. Counsel for the Assessee submitted a written statement withdrawing the cross objection. Consequently, the Tribunal dismissed the cross objection as withdrawn. Conclusion: The Tribunal dismissed both the appeal of the Department and the cross objection of the Assessee. The deletion of the addition of ?2,26,30,000/- by the CIT(A) was upheld, as the cash deposits in the bank account of M/s Shree Radha Commodity Services were considered genuine, and the amount received by the assessee through banking channels could not be treated as unexplained.
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