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TMI Blog2020 (2) TMI 142X X X X Extracts X X X X X X X X Extracts X X X X ..... ase, the learned CIT(A) has erred both on facts and in law in confirming the action of the AO despite the fact that the reopening by the AO and consequent reassessment without complying with the statutory conditions prescribed under Section 147 read with Section 147 of the Act is bad in law. 3. On the facts and circumstances of the case, the learned CIT(A) has erred both on facts and in law in confirming the action of the AO ignoring the fact that the AO has erred both on facts and in law in making reassessment under Section 147 of the Act as the reasons recorded for reopening the assessment does not meet the requirements of Section 147 of the Act. 4. On the facts and circumstances of the case, the learned CIT(A) has erred both on fac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent proceedings in this case was reopened under NPS cycle that the assessee has not filed his return of income for the AY 2010-11. However, as per details appeared in the AIR Report, it shows that the assessee has deposited the cash during the financial year amounting to Rs. 29 lacs in the bank account. In view of above, notice u/s. 148 of the Act dated 29.3.2017 was issued in the name of the assessee. The AO during the scrutiny found that there was cash deposit of Rs. 29 lacs in the bank account of the assessee during the year. The assessee submitted that through an Ikrarnama he has received Rs. 19 lacs in cash as Bayana from a buyer on the deal of agricultural land. The AO found that no source of withdrawals of Rs. 19 lacs has been submit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iscontinue its business in the year under consideration i.e. AY 2010-11, assessee sold its closing stock amounting to Rs. 9,07,250/-appearing in the books of assessee (maintained for his own understanding) as on 31.03.2009. Accordingly, the above cash deposits to the extent of Rs. 8,77,100/- was on account of sale of closing stock. Regarding the balance cash deposit amounting to Rs. 1,22,900/-, it was submitted by the assessee that the said amount was deposited out of the cash balance of Rs. 2,30,127/- as appearing in the balance sheet of the assessee as on 31.03.2009. It was submitted that the cash deposit amounting to Rs. 10,00,000/- was purely on account of business activity and assessee has duly discharged its onus of establishing the s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onfirmed by the Ld. CIT(A). I note that the AO has made the addition on the basis of the crediting the bank account. However, the Ld. CIT(A) has confirmed the same on the basis that there is a contradiction in the explanation given by the assessee before the AO and the explanation given before him. I further note that it is mentioned in para 6.2.4 of the Ld. CIT(A) order that the assessee during the appeal proceedings submitted that the deposit of Rs. 10,00,000/- was made out of cash of Rs. 8,77,100/- paid out of the sale of closing stock and cash of Rs. 1,22,900/- out of the past savings whereas before the AO the assessee has submitted that the amount was paid out of the cash sales. The Ld. CIT(A) has considered this to be a contradictory ..... X X X X Extracts X X X X X X X X Extracts X X X X
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