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TMI Blog2017 (3) TMI 325X X X X Extracts X X X X X X X X Extracts X X X X ..... btors is of ₹ 2,79,166/- and total sales made during the year is ₹ 9,46,850/-. Out of this during the year assessee received amount of ₹ 10,87,362/- in cash and ₹ 1,33,221/- vide cheques. Thus find considerable cogency in the assessee’s contention that the cash received and withdrawals after making payment for expenses and creditors deposited in to the bank account and the same was used to advance the loan to the said parties. Hence, it is crystal clear that the payments are totally out of assessee’s business and the results have been accepted by the AO, as the business income has been assessed at ₹ 1,51,580/-, hence, the source of deposit has been explained by the Assessee to the AO and addition made on th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... record by the assessee. 5. The appellant craves leave to add, amend or alter any of the grounds of appeal. 3. The brief facts of the case are that the assessee filed return for the assessment year 2009-10 declaring income of ₹ 1,51,580/- on 1.8.2009. Subsequently, on the basis of information received, AO issued notice u/s. 148 of the I.T. Act, 1961 on 14.3.2012. Later on, in response to notices issued u/s. 143(2) and 142(1) of the I.T. Act, 1961, the A.R. of the assessee appeared from time to time and filed necessary details. During the year under consideration, AO noted that the assessee has declared income from business and other sources. AO also noted that assessee has advanced loan to following parties:- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from where the purchase were made by way of providing complete address of these parties. During the year under consideration, assessee has advanced loan amount to ₹ 9,50,000/- to M/s Neha Wudlam Private Limited, Satya Derve Sharma and Shree Ram Trading Co. Since the assessee has not furnished the source of cash deposit for advancing the loan satisfactorily, the same is treated as assessee s income from undisclosed sources and the same is added to the declared income of the assessee and assessment was completed u/s. 143(3) of the I.T. Act, 1961 vide his order dated 20.3.2013. 4. Against the assessment order dated 20.3.2013, assessee appealed before the Ld. CIT(A), who vide his impugned order dated 29.6.2014 has dismissed the appeal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... payments are totally out of his business and the results have been accepted by the AO, as the business income has been assessed at ₹ 1,51,580/-, hence, the source of deposit has been explained by the Assessee to the AO. In view of above, Ld. Counsel of the assessee stated that AO has not considered the aforesaid source of deposits, hence, the addition made on this account may be deleted. In order to support his contention he relied upon the following case laws:- - ITAT, Delhi Bench decision in the case of Bir Bahadur Singh Sijwali vs. ITO (2015) 68 SOT 197 (Delhi Trib.) - ITAT, Agra Bench in the case of SarafGramodyogSansthan vs. ITO (2007) 108 ITD 115 (Agra) - High Court of Delhi in the case of Indo Arab Air Services (2016 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... el of the assessee s contention that the cash received and withdrawals after making payment for expenses and creditors deposited in to the bank account and the same was used to advance the loan to the said parties. Hence, it is crystal clear that the payments are totally out of assessee s business and the results have been accepted by the AO, as the business income has been assessed at ₹ 1,51,580/-, hence, the source of deposit has been explained by the Assessee to the AO and addition made on this account is not sustainable in the eyes of law, hence, the same needs to be deleted. My aforesaid view is fully supported by the following decisions :- ITAT Delhi in the case of Bir Bahadur Singh Sijwali vs. ITA [2015] 68 SOT 197 (Delhi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... believe, rather than suspect, that an income has escaped assessment. {Para 8} In view of the reasons set out above, as also bearing in mind entirety of the case, the reasons recorded by the Assessing Officer, as set out earlier, were not sufficient reasons for reopening the assessment proceedings. Therefore, the reassessment proceedings is quash. As the reassessment itself is quashed, all other issues on merits of the additions, in the impugned assessment proceedings, are rendered academic and infructuous. {Para 10} ITAT Agra Bench in the case of SarafGramodyogSansthan v. ITA [2007] 108 ITD 115 (Agra) The crucial expression for assumption of jurisdiction under section 147 is 'any income chargeable to tax has escaped assessm ..... X X X X Extracts X X X X X X X X Extracts X X X X
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