9911796707
TMI Blog2004 (12) TMI 340X X X X Extracts X X X X X X X X Extracts X X X X ..... xplained, the AO could have dealt with this issue in the asst. yr. 1990-91. Therefore, the CIT(A) is justified in holding that the action of the AO is not correct. The AO has failed to take cognizance of the return for 1990-91 while deciding the issue of 1991-92 as the return was before him. The opening balance of cash cannot be treated as unexplained in the AY 1991-92. Thus, we have no hesitation in confirming the order of the CIT(A) and reject the ground taken by the Revenue. Interest under ss. 234A and 234B as charged while processing the return u/s 143(1)(a) of the Act, for the reason that the subsequent clarificatory amendment to s. 234B by the Finance Act, 1995, with retrospective effect from 1st April, 1989, supports the action of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... O was of the opinion that there was no necessity to keep such amount of cash and even when this cash was in her possession, she has withdrawn money from various bank accounts and, therefore, doubted the availability of physical cash and treated this sum of Rs. 6,50,000 as income from other sources. 3. On appeal, the CIT(A) held that it is none of the business of the AO to direct the assessee to keep the cash in a particular form. It is entirely the option of the assessee to keep the cash in any form as she likes. It is left to the convenience and decision of the assessee and the statute does not provide as to in what manner the money should be preserved by an assessee and the Act does not also provide for taxing the money kept in physical ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unsel for the assessee strongly supported the order of the CIT(A). 6. We have heard the rival submissions and perused the records. The assessee has filed a statement of affairs for the asst. yr. 1991-92 wherein she has shown the opening cash balance of Rs. 6,57,642.60. The AO added this physical possession of cash and added Rs. 6,50,000. The contention of the Revenue is that the assessee has not filed the return for the earlier assessment year, i.e., 1990-91 and it was filed only on 23rd Feb., 1993. However, as seen from the assessment order, the AO issued notice under s. 143(3) on 23rd Feb., 1993, under s. 143(3) for the asst. yr. 1991-92 and the order was passed on 31st March, 1994. From this it is evident that the return for the asst. y ..... X X X X Extracts X X X X X X X X Extracts X X X X
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