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TMI Blog2024 (6) TMI 922X X X X Extracts X X X X X X X X Extracts X X X X ..... y other receipt which is not liable to tax. How to establish the fact that the cash deposited in the bank account does not represent the income of the assessee in the absence of any return of income filed by the assessee u/s 139(1) - We are of the opinion that the AO, in the absence of any return filed by the assessee, cannot draw any inference about the justification for the source of cash deposit based on documents. Regarding the transaction being cash deposits carried out by the assessee, there is no mechanism available with the AO except to initiate the proceeding u/s 147 of the Act. For initiating the proceedings u/s 147 AO has to form prima facie reason to believe that income of the assessee has escaped assessment which has been done, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er of Income Tax (Appeals), Jamnagar, arising in the matter of assessment order passed under s. 147 r.w.s. 144 of the Income Tax Act, 1961 (here-in-after referred to as the Act ) relevant to the Assessment Year 2009-2010. 2. At the outset, I note that there was a delay in filing the appeal by the assessee for 2 days only. Considering the length of delay in filing the appeal, the Ld. DR did not raise any objection if the delay is condoned. Accordingly, I condone the delay and proceed to adjudicate the issue raised by the assessee on merit. 3. The assessee in the ground of appeal has challenged the validity of the assessment framed u/s 147 r.w.s. 143(3) of the Act, stating that the same have been initiated merely on the reasoning that there w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct. Admittedly, the cash deposit in the bank account ipso-facto does not represent the income. There can be multiple reason for deposit of cash in a bank for example the money borrowed, sales of agricultural produce, sale proceeds of property, sale proceeds of household items or any other receipt which is not liable to tax. But the controversy arises how to establish the fact that the cash deposited in the bank account does not represent the income of the assessee in the absence of any return of income filed by the assessee u/s 139(1) of the Act. As such, I am of the opinion that the AO, in the absence of any return filed by the assessee, cannot draw any inference about the justification for the source of cash deposit based on documents. Re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... T(A), the assessee is in appeal before me. 9. The Ld. AR before me filed a paper book running from pages 1 to 5 containing the cash book as well as bank statement and submitted that the cash was deposited against the sales made by him and out of cash withdrawal from the bank account. Therefore, the Ld. AR contended that no addition is warranted. 10. On the other hand, the Ld. DR vehemently supported the order of the authorities below. 11. I have heard the rival contentions of both the parties and perused the materials available on record. On perusal of the cash book and the bank statement available in paper book, I note that there were sufficient withdrawals from the bank account in cash prior to the deposit of cash in the bank except the s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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