9911796707
TMI Blog2024 (8) TMI 630X X X X Extracts X X X X X X X X Extracts X X X X ..... fore us, it is observed that the assessee had not filed any return of income for assessment year 2007-08 to 2011-12. When the cash deposits were found in his bank account, the assessee came forward to disclose income from the profit derived from his business. As by that time, the limitation for filing return of income had expired for assessment years 2007-08 to 2010-11. The assessee offered the entire income for assessment years 2007-08 to 2011-12 by offering income of ₹ 5,49,320/- computed by applying 3% net profit rate on the receipts appearing in the bank account. The assessee had also discharged tax liability for the income declared by paying tax of ₹ 45,180/-. This is clearly discernible from the copy of the bank challan an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... irst appellate authority. Insofar as the first issue is concerned, briefly, the facts are that the assessee is a resident-individual. Based on information available on record indicating that the assessee had deposited cash amounting to ₹ 16,99,648/- and ₹ 34,21,769/- in previous years relating to assessment years 2007-08 and 2008-09, respectively, in his bank account maintained with Punjab National Bank, Vikas Puri, New Delhi, whereas the assessee had not filed any return of income for the relevant assessment years, the Assessing Officer reopened the assessment under Section 147 of the Act. In course of assessment proceedings, the assessee claimed that cash deposits in the bank account were out of receipts from the business of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8th July, 2014. Thus, he submitted that the notice under Section 148, having been served after expiry of six years, proceedings are barred by limitation. 4. Per contra, the learned DR submitted that notice under Section 148 was initially issued on 28th March, 2014 which is within the period of limitation. Therefore, the contention of the assessee is unacceptable. 5. We have considered rival submissions and perused materials on record. To factually verify the actual date on which notice under section 148 of the Act was issued and served on the assessee, the Bench had directed the Department to produce the assessment records. In terms with such direction, the assessment records were produced by the learned DR. In course of hearing, the Bench ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the legal issue it has become academic, however, since the parties were also heard on this issue, we deem it appropriate to render our decision on the issue. 7. As discussed earlier, certain cash deposits were found in the bank account of the assessee maintained with Punjab National Bank. Before the Assessing Officer, the assessee had stated that such receipts are out of his business of trading in oil and lubricants. Apparently, the Assessing Officer has disbelieved assessee s contention and treated the entries appearing in the bank account as unexplained cash credit under Section 68 of the Act. However, learned first appellate authority has accepted assessee s claim that the receipts are from business. Therefore, he estimated the profit e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... his business activity has been accepted by the learned first appellate authority. However, he has estimated the income at 25% of the receipts. From the materials placed before us, it is observed that the assessee had not filed any return of income for assessment year 2007-08 to 2011-12. When the cash deposits were found in his bank account, the assessee came forward to disclose income from the profit derived from his business. However, by that time, the limitation for filing return of income had expired for assessment years 2007-08 to 2010-11. Therefore, the assessee offered the entire income for assessment years 2007-08 to 2011-12 by offering income of ₹ 5,49,320/- computed by applying 3% net profit rate on the receipts appearing in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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