SUMAN KUMAR SINGH,GOPALGANJ vs. ITO, WARD-2(4), SIWAN

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ITA 1/PAT/2023Status: DisposedITAT Patna26 July 2024AY 2013-143 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal restored the matter to the AO to verify the assessee's claim regarding the actual cash deposit. If the assessee's claim is found correct, the reopening proceedings, initiated after four years on potentially wrong reasons, should be quashed.

What were the facts?

The assessee's assessment for AY 2013-14 was reopened based on information of a cash deposit of Rs. 16,40,140/-. The assessee claimed that the actual cash deposit was only Rs. 2,03,500/-, supported by a bank statement.

What were the issues?

The primary issue was the validity of the reopening proceedings based on an alleged incorrect amount of cash deposit. The Tribunal also considered the reopening being initiated after four years.

Which sections of the Income-tax Act were involved?

Section 147,Section 148,Section 250

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, PATNA BENCH VIRTUAL

Before: Dr. Manish Borad & Shri Sonjoy Sarma

order

: 26.07.2024 ORDER

Per Dr. Manish Borad, Accountant Member:

1.

This appeal filed by the assessee pertaining to the Assessment Year (in short “AY”) 2013-14 is directed against the order passed u/s 250 of the Income Tax Act, 1961 in short the “Act”) by ld. Commissioner of Income-tax (Appeal), National Faceless Appeal Centre (NFAC), Delhi [in short ld. “CIT(A)”] dated 04.11.2022 arising out of the assessment order framed u/s 14r r.w.s. 147 of the Act by ITO, Ward- 2(4), Siwan dated 16.12.2019. A Y: 2013-14, Suman Kr. Singh 2. At the outset, Ld. Counsel for the assessee challenged the validity of the reopening proceedings on the ground that in the reasons recorded for reopening assessee has alleged to have deposited cash of Rs.16,40,140/- in the bank account maintained with Central Bank of India. However, the actual amount of cash deposited during the year is only Rs.2,03,500/-. It was further submitted that since the reopening has been carried out on wrong reasons, the proceeding deserves to be quashed. 3. On the other hand, Ld. DR submitted that the matter may be restored to the AO to examine the facts and then to decide about the validity of reopening proceedings. 4. We have heard the rival contentions and perused the material available on record. The assessee being individual has not filed any return of income in the impugned assessment year. There was an information received by the AO that cash of Rs.16,40,140/- has been deposited in the bank account of the assessee maintained with Central Bank of India, Mohmmadpur, Gopalganj. Notice u/s. 148 of the Act was issued but the assessee neither objected to the issuance of notice nor filed any return in compliance thereof. Ld. AO had not option except to frame best judgment assessment and made the assessment of rs.16,40,140/-. Even before the Ld. CIT(A) assessee failed to furnish any detail to controvert the finding of the AO about the alleged cash deposit of Rs.16,40,140/-. 5. Now, before us, assessee filed written submission along with a copy of bank statement in the name of assessee held with Central Bank of India for the period 01.04.2012 to 31.03.2013 stating that the cash of only Rs.2,03,500/- has been deposited whereas the allegation by the AO is cash deposit of Rs.16,40,140/-. Since the very basis of reopening of the assessment is about unexplained cash deposit and

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