9911796707
TMI Blog2022 (4) TMI 848X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 narrated above, we delete the addition. - Appeal of assessee allowed. - ITA No. 1070/AHD/2015 - - - Dated:- 5-4-2022 - Shri Pawan Singh, JM And Dr. A. L. Saini, AM For the Assessee : Shri Mehul Shah, CA For the Revenue : Shri Sita Ram Meena, Sr. DR ORDER PER DR. A. L. SAINI, ACCOUNTANT MEMBER: Captioned appeal filed by the assessee, pertaining to Assessment Year 2010-11, is directed against the order passed by the Learned Commissioner of Income Tax (Appeals)-V, Surat [in short ld. CIT (A) ], in Appeal No. CAS/V/24/2013-1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dition of ₹ 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 based on the reasons given in the affidavit the delay may be condoned. 5. However, Learned Departmental Representative (ld. DR) for the Revenue, on the other hand, has strongly objected to the prayer for condonation of delay and submitted that the delay cannot be condoned on the mere plea that assessee s Counsel received the order of the CIT(A), and the Counsel forgot to communicate (the said fact of receipt of or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . CIT(A), the assessee is in appeal before us. 10. Shri Mehul Shah, Learned Counsel for the assessee pleads before the Bench stating that assessing officer must have 'reason to believe that income chargeable to tax has escaped assessment. Such reason to believe must be based on some material coming to the possession of the Ld. Assessing Officer which may trigger reason to suspect. The ld Counsel pointed out that reason to believe must have a rational connection with or relevant bearing on the formation of the belief, i.e, there must be the direct nexus or link between the material and the formation of such belief. Since in the instant case, the assessment was reopened based on AIR information that assessee has deposited cash in his bank account, however, such cash deposit is out of his business income. Besides, the deposit in the bank account may be out of past savings, therefore, reason to believe, is only kind of a reason to suspect and hence 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 inc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 provisions of section 44AD of the Act, we note that assessee has filed his return of income under section 44AD of the Act and shown turnover of ₹ 16,02,300/-, which falls in the scope of provisions of section 44AD of the Act. The cash deposit in the bank account is to the tune of ₹ 13,87,000/-, as noted by the assessing officer. As per assessee, the said cash deposited in bank account is out of cash turnover of ₹ 16,02,300/-, as declared by the assessee, therefore, we note that such small assessee has proved his bona fide, about the cash so deposited in the bank account. The ld Counsel pleads before us that while filing return of income, the assessee has selected wrong Income Tax Return form (ITR form), that does not mean that assessee is not covered by the provisions of section 44AD of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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