9911796707
TMI Blog2022 (4) TMI 848X X X X Extracts X X X X X X X X Extracts X X X X ..... Income Tax Act, 1961 (hereinafter referred to as the 'Act'), dated 18.03.2013. 2. Grounds of appeal raised by the assessee are as follows: "1. On the facts and circumstances of the case as well as law on the subject, the learned Commissioner of Income Tax (Appeals) has erred in confirming the action of assessing officer in reopening assessment by issuing notice u/s 148 of the IT Act, 1961 and thereby erred in framing assessment u/s 143(3) r.w.s 147 of the I.T. Act, 1961. 2. On the facts and circumstances of the case as well as law on the subject, the learned Commissioner of Income Tax (Appeals) has erred in confirming the action of the Assessing Officer in making an addition of Rs. 13,87,000/- by treating the cash deposit in bank accou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 13,87,000/- by treating cash deposit in bank account as income from other sources made by assessing officer and confirmed by Ld. CIT(A). 4) The assessee submits that the case is a meritorious one and requires consideration. If the delay is not condoned, it would cause irreparable loss to the applicant. 5) Therefore, in the fact and circumstances of the case, the applicant prays to this Honourable Income Tax Appellate Tribunal. (a) to condone the delay of 132 days in filing the Appeal No. 1070/A/2015 and to extend the time for filing the same inclusive and upto the date of filing the appeal. (b) to grant such other and further relief as deemed fit by Honourable Income Tax Appellate Tribunal. 4. The Learned Counsel contended that bas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... income. 8. Later on, assessee`s case was reopened under section 147 of the Income Tax Act, on the basis of information received from the AIR that assessee has deposited cash of Rs. 13,87,000/- in state bank of India. Accordingly, a notice under section 148 of the Act, along with reasons recorded was issued on 21.02.2012 and duly served upon the assessee. Subsequently notices u/s 142(1) was issued on 04.10.2012 and 08.11.2012 and duly served upon the assessee. In response to the above notices, assessee attended and submitted the required details from time to time. During the course of scrutiny proceeding, it was observed that assessee has deposited cash of Rs. 13,87,000/- in the state bank of India in assessment year 2010-11. Therefore, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce reopening proceedings initiated by the assessing officer is not in accordance with the provisions of section 147 of the Act. 11. On merits, Learned Counsel submits that assessee is a very small trader and filed his return of income under section 44AD of the Act. Since the assessee has filed his return of income under section 44AD of the Act, therefore, the assessee does not supposed to maintain books of accounts. However, the assessee has been maintaining, memorandum books of accounts for his own purpose and the same were submitted before the assessing officer to prove the bona-fide of the transactions. Therefore, assessee filed all possible documents before the assessing officer, hence addition made by the assessing officer may be del ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ection 44AD of the Act, is reproduced below( to the extent applicable to our analysis): "Special provision for computing profits and gains of business on presumptive basis. 44AD. (1) Notwithstanding anything to the contrary contained in sections 28 to 43C, in the case of an eligible assessee engaged in an eligible business, a sum equal to eight per cent of the total turnover or gross receipts of the assessee in the previous year on account of such business or, as the case may be, a sum higher than the aforesaid sum claimed to have been earned by the eligible assessee, shall be deemed to be the profits and gains of such business chargeable to tax under the head "Profits and gains of business or profession" 14. In the light of the provis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that assessing officer has not made any adverse finding in any of these documents even, though all the details were furnished by the assessee before him. The assessing officer ought to have examined all these details and refuted / rejected them, with a cogent adverse findings and discernable line of reasoning, in order to arrive at a conclusion and to make the addition. On the contrary, the assessing officer has just brushed aside these evidences without even a word on why they are not acceptable and how these are fabricated documents. It is a well settled Law that when an assessee has all the possible evidence in support of its claim, they cannot be brushed aside based on surmises. Therefore, based on the facts and circumstances, as narrat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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