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TMI Blog2018 (4) TMI 1960X X X X Extracts X X X X X X X X Extracts X X X X ..... 8-09 total cash has been deposited in the savings bank account of the assessee held with Union Bank of India, Neemuch. This information supported by the material; evidence in the shape of AIR information was sufficient enough for the AO to issue notice u/s 148 - The action taken by the AO further seems to be correct because the alleged cash was deposited in the savings bank account and one cannot ignore the possibility that the income may have been concealed and not duly reflected in the income tax return. We, find no infirmity in the findings of CIT (A) confirming the action of the Assessing Officer in issuing notice u/s 148 of the Act and to make the reassessment u/s 147. Estimated disallowance of car expenses, mobile expenses, tra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r of - Income-tax (Appeals), Ujjain, dated 23.11.2016 which is arising out Smt. Sharmiladevi Dungarwal Neemuch Versus Income tax Officer Neemuch of the order u/s 143(3) of the Income Tax Act dated 15.9.2014 framed by the ITO, Neemuch. 2. The assessee has raised the following grounds of appeal :- 1.1 That on the facts and in the circumstances of the case, the learned CIT(A) erred in confirming the reassessment proceedings as started by the ld. A.O. u/s 148 of the Income Tax Act without properly appreciating the facts of the case and submission made before him. The said proceedings as started by A.O. and confirmed by the CIT(A) are illegal and bad in law. The reassessment proceedings so initiated and assessment framed thereon requires ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d reasonable opportunity. 3. Briefly stated, the facts, as culled out from record, are that the assessee is an authorised dealer of Birla Tyres and engaged in purchase and sale of tyres and tubes. The income of Rs.3,30,890/- was declared in the return of income filed on 30.9.2009. The return was processed u/s 143(1)(a) of the Act. Subsequently, as per the AIR information the Assessing Officer noticed that during the F.Y. 2008-09 the assessee has deposited cash of Rs.17,92,600/- in the saving bank account of Union Bank of India, Neemuch Branch. The Assessing Officer accordingly issued notice u/s 148 of the Act for initiating reassessment proceedings u/s 147 of the Act. During the course of assessment proceedings the Assessing Officer w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... emently argued supporting the orders of the lower authorities. 8. We have heard the rival contentions and perused the material available on record. Apropos the first issue about validity of notice u/s 148 of the Act and the reassessment proceedings u/s 147/143(3) of the Act, we find that the return of income filed on 30.9.2009 was processed u/s 143(1)(a) of the Act which means that there was no scrutiny of accounts and records of the assessee. Subsequently, the Assessing Officer received information on the basis of AIR received by the Income Tax Department which revealed that during the F.Y. 2008-09 total cash of Rs. 17,92,602/- has been deposited in the savings bank account of the assessee held with Union Bank of India, Neemuch. In our ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cord. The alleged cash deposit was also duly explained by the assessee through its account books and the Assessing Officer was satisfied with the information and he has mentioned that the alleged cash was in the nature of sales during the year. The Assessing Officer after failing to make any addition on the count of alleged cash deposit, further scrutinised the account books and without pointing out any specific mistake made an ad hoc disallowance of 15% of various expenses treating them to be personal in nature. Similarly, addition for household withdrawals was made just for the lack of information to be received by the assessee. In our view, to make such disallowances the Assessing Officer should have made a test check of the bills and vo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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