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TMI Blog2019 (2) TMI 150X X X X Extracts X X X X X X X X Extracts X X X X ..... her two creditors is also available on record. In presence of all these peculiar facts and circumstances of the present case, the decisions relied by the assessee in several cases have rightly not been considered as relevant to the case of assessee. We also do not find any credible material on record from the side of assessee to discard the findings reached by the ld. Authorities below. - Decided against assessee - ITA No. 1209/Del/2018 - - - Dated:- 29-10-2018 - Shri Amit Shukla, Judicial Member And Shri L.P. Sahu, Accountant Member For the Appellant : Sh. P.S. Kashyap, C.A. For the Respondent : Sh. Koushlendra Tiwari, Sr. DR ORDER PER L.P. SAHU, A.M.: This is an appeal filed by the assessee against the order of ld. CIT(A), Meerut dated 25.01.2018 for the assessment year 2010-11 on the following grounds : A) The order passed u/s 147 read with section 143(3) of the Act is not maintainable under Income tax Act,1961 for the following reasons: 1) That notice issued u/s 148 dt 21.03.2017 was issued merely on the basis of AIR information i.e. assessee has deposited cash of ₹ 27,62,500/- in saving bank account. 2) That the Ld. AO failed t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... clearly shows that the assessee has no explanation regarding cash deposit made by him in his saving bank account. Further, due to non- compliance, PAN of the assessee is not known, hence it is not ascertainable whether return was filed or not. Hence, assessee failed to disclose fully and truly all material facts necessary for his assessment. Therefore, I have reasons to believe that cash deposit of ₹ 27,62,500/- in saving bank account which is chargeable to tax has escaped assessment in the meaning of section 147 of IT Act, 1961 for A.Y. 2010-11. Income chargeable to tax which has escaped assessment amounting to or likely to amount to one lakh rupees or more for A.Y. 2010-11. I, therefore, consider that it is a fit case for issue of notice u/s 148 of the IT Act, 1961. In compliance to the notice u/s. 148 dated 21.03.2017, the assessee submitted that the original return filed on 09.03.2011 may be considered as return filed in response to notice u/s. 148. Subsequently, other statutory notices were also issued. In reply to these notices, the assessee submitted as under : That assessee maintained bank account with Punjab National Bank, Hastinapur. Copy of the sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5 lacs in the account of assessee for the purpose as stated by the assessee, but he failed to substantiate his creditworthiness by furnishing any evidence before the Assessing Officer to support the sources narrated by him. The Assessing Officer also observed that the assessee also failed to file complete details of transactions alongwith the copy of bank statements etc. so to as to prove the identity, creditworthiness of remaining two creditors Sh. Kuldeep and Dinesh Kumar Sharma and genuineness of transactions. He, therefore, made an addition of ₹ 15,00,000/- u/s. 68 of the Act out of cash deposit of ₹ 27,62,500/-, as the remaining amount was considered as explained by the assessee. The assessee carried the matter before the ld.CIT(A) in appeal and made detailed submissions with various case laws on validity of reassessment proceedings as well as on merits. The first appellate authority, however, after considering the submissions of the assessee, affirmed the action of the Assessing Officer vide impugned order. Aggrieved, the assessee is in appeal before us. 3. The learned AR of the assessee by way of various grounds before us has challenged the validity of reo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of suspicion. On going through the assessment order it is seen that AO was diligent enough to issue a query letter dt. 06.01.2017 to the assessee, for verification of the cash deposit in her bank account. It is pertinent to point out that fact regarding the issue of query' letter itself in not dispute. The ld. AR has not appreciated the fact, that till such time the AO issued letter for verification of the deposit, it was a case of suspicion and doubt on part of the AO. He was wanting satisfy himself about the correctness and veracity of the transaction. But, when no response to the query letter was received the AO was led to believe that taxable income had escaped assessment. Therefore his suspicion got converted into a bona-fide belief which was emerging from the non- compliance of the assessee, that led to belief formation on part of the AO that taxable income had escaped assessment. Thus, to say that AO had proceeded on reason to suspect or in a mechanical manner would be a misplaced argument. Thus, it is rejected. Now coming to the meeting of objections raised by the assessee in response to Notice u/s 148 and on receipt of reasons. After perusal of record it i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er, it was a statement in favour of the assessee which th AO did not accept as it was a bald statement in favour of the assessee but was no corroborative evidence to support the same. Thus, the Hon'ble SC judgment of Andeman Timber does not have implication or relevance in the matter where statement of the witness was in favour of the assessee but was not accepted by the AO as the witness could not substantiate his conformation favorable to the assessee by bringing evidence to support the same. In other two cases also no concrete evidence has been placed on record to controvert the findings of the AO that the persons claiming to have forwarded the monies had the means to do so. The AR thus, failed to bring any material on record to discount the findings of the AO with regard to unexplained deposit in the bank account of the assessee. Thus, considering the arguments of the Id. counsel, I am of the view that he has not been able to rebut the findings of the AO. 5. In view of the forgoing discussion the appeal is rejected and all grounds of are hereby dismissed. It is worthwhile to point out that in the instant case, the Assessing Officer has not recorded its reason on s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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