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TMI Blog2017 (8) TMI 1131X X X X Extracts X X X X X X X X Extracts X X X X ..... s been considered, however she has been unable to explain the source of cash deposits in her account or provide evidence in the form of confirmations of relatives or persons who have claimed to have given her such amounts for her son’s wedding etc. Therefore in the absence of any evidence or the above explanation being substantiated by even corroborative evidence cannot be accepted. It may be mentioned that since the cash credits are there in her bank account, the onus is on the Assessee to prove the source of the same, Kale Khan Mohd Hanif vs CIT(1963 (2) TMI 33 - SUPREME Court). It is immaterial that she did not have any business activities or known source of income, cash deposits in bank have to be explained by the assessee otherwise they can be added U/S 69 or 66B. AO has already taken a reasonable approach of taking the peak balance of the deposits in her account and benefit of telescoping i.e withdrawals for the same has already been given. Accordingly Ld. CIT(A) has rightly held that the addition made by the AO was justified and the same was confirmed - Decided against assessee. - ITA No. 1060/DEL/2017 - - - Dated:- 8-8-2017 - Shri H. S. Sidhu, Judicial Member Asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed was 11th November, 2016. He also filed the affidavit from Mr. Sitaram Batra brother of appellant that she was with him for treatment and not staying at her residential address during that period and Medical certificate from Prasad Hospital, Rudrapur regarding her ailment. Therefore, he stated the appellant was not present at her residence and not able to sign the required documents. Therefore, there was delay of 2-3 days in filing the appeal. Keeping in view of the facts and circumstances of the case, I am of the considered view that there is plausible reasons for delay in filing the appeal of 44 days which needs to be condoned. Therefore, I condone the delay of 44 days and proceed to decide the appeal on merits in the foregoing paragraphs. 5. The brief facts of the case are as per AIR information of cash deposit of more than ₹ 10 lacs in the saving bank account, a verification letter was issued on 24.12.2013. In view of the non4 compliance of the verification letter a notice under section 148 of the I.T. Act, 1961 was issued on 7.2.2014 requiring the assessee to file the return of income. No return of income has been filed by the assessee in compliance of notice under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Appellant in these grounds of Appeal have been considered. The Appellant has challenged the reopening of her case U/S 147 and assessment of the peak deposits in her bank account. Now the reasons recorded by AO for reopening of Assessment u/s 148 are reproduced as under- In instant case as per AIR information, the assessee has deposited cash of ₹ 10,66,850/-. The assessee did not comply with the query letters dated 08.11.2013 24.12.2013 sent in this respect. It shows that he has nothing to say against this cash deposit. In light of the above, it is clear that the cash deposit of ₹ 10, 66,850/- is unexplained. Therefore, I have reason to believe that the above mentioned income has escaped assessment within meaning of section 147. Issue notice u/s. 148 for initiating proceedings u/s. 147 0f the Income Tax Act, 1961,for A.Y.-2009- 10. Therefore from the above it is seen that the AO did have material or facts that could lead him to the prima facie conclude, that there was escapement of income and reasons to believe were duly recorded that basis. In addition the Hon'ble Punjab and Haryana High Court in the case of Jawand Sons vs. CIT repor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt amounts have been made on various dates and there are subsequent withdrawals also. The best possible option to compute the income out of the information on hand in from of bank statement of the assessee is to calculate the balance over the relevant period for which the income has to be computed. Perusal of bank statement revealed that the assesseehas peak balance of ₹ 5,55,000/- on 19.9.2008. Therefore income computed in respect of the cash deposits in the saving bank account during the financial year amounting to ₹ 5,55,000/- is added to the total income of the assessee. Accordingly the AO completed the assessment of the appellant at an income of ₹ 5,55,000/- u/s. 144/147 of the Income Tax Act, 1961. 5.1 In appeal it has been submitted that the AO has proceeded only on estimates and surmises in the whole proceedings. Further that his hypothesis that the peak balance of ₹ 5,55,000/- constitutes income from other sources, cannot be approved under any law or accounting .presumptions, the estimate is not based on any adverse material or corroborating evidence on record and cannot be termed as a scientific or reasonable conclusion under the circu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The factual position of these deposits cannot be doubted without any coherent adverse material on record. 5.3 The submissions as above of the Appellant and the Remand Report of the AO have been considered. The issue in this ground of Appeal is the addition made by the AO of the peak cash deposits in the bank account of the Appellant of ₹ 5,55,OOO/-. While the contention of the Appellant that she was a handicapped widow with no source of income has been considered, however she has been unable to explain the source of cash deposits in her account or provide evidence in the form of confirmations of relatives or persons who have claimed to have given her such amounts for her son s wedding etc. Therefore in the absence of any evidence or the above explanation being substantiated by even corroborative evidence cannot be accepted. It may be mentioned that since the cash credits are there in her bank account, the onus is on the Appellant to prove the source of the same, Kale Khan Mohd Hanif vs CIT(SC) 50ITR. It is immaterial that she did not have any business activities or known source of income, cash deposits in bank have to be explained by the assessee otherwise they can be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .) Ltd., [1996] 217 ITR 597 (SC); Raymond Woollen Mills Ltd. v. ITa [1999] 236 IT 34 (SC) has held by that if the Assessing Officer, for whatever reason, has reason to believe that income has escaped assessment, it confers jurisdiction to reopen the assessment, so long as the conditions of section 147 are fulfilled, the Assessing Officer is free to initiate proceedings under section 147. It is observed that the Assessing Officer had the reason to believe that income chargeable to tax had escaped assessment and it had a rational nexus with the material before him alongwith the information with him. He had reason to believe that income chargeable to tax has escaped assessment and duly recorded the reasons for the same. In this case there is no change in opinion of the Assessing Officer as the matter was never investigated or adjudicated or information on the issue was called or examined by the Assessing Officer. It may be mentioned here that as mentioned by the AO, the Appellant had been issued a letter for verification of the deposits which was however not responded to, therefore the Appellant s contention that the AO did not verify the deposits before issuing the notice also u/s. 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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