The Tax PublishersITA Nos. 114 & 115/Alld/2017
2020 TaxPub(DT) 5115 (All-Trib)INCOME TAX ACT, 1961
Section 153C
Where assessee was an individual and partner in a firm and pursuant to search action, AO while framing assessment under section 153C read with section 153A, and section 143(3), made addition on allegation that cash, which was deposited by assessee in her two bank accounts, was not disclosed, and contention of assessee was that opening cash balance, which was closing cash balance of the earlier relevant year, was accepted by revenue, considering that it was unclear as to whether bank accounts were declared by the assessee and whether opening cash balance was accepted by revenue in earlier year, matter was remanded back to AO for consideration afresh.
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Search and seizure - Assessment under section 153C - Allegation that cash was deposited by assessee in her two bank accounts which was not disclosed -
Assessee was an individual and was partner in firm. She derived income from supply of contract work and also derived salary and interest income. There was a search and seizure operation under section 132 at residential and business premises belonging to concerned group. While framing assessment under section 153C read with section 153A, and section 143(3), AO alleged that cash, which was deposited by assessee in her two bank accounts, was not disclosed. Assessee contended that money was routed in the bank accounts by withdrawal from the other bank accounts. However, no evidence to that effect was submitted by assessee before AO, to substantiate her stand, which led to the additions for relevant assessment year [vizs. assessment years 2006-07 and 2008-09].Held Before CIT(A), assessee claimed that there was an opening cash balance as at 1-4-2005 which was primarily used for deposit of cash in bank accounts in relevant previous year (2005-06). Assessee submitted that said opening cash balance as at 1-4-2005 was the closing cash balance of the earlier year as at 31-3-2005 and the cash flow of the earlier year was accepted by revenue, but said facts were not emanating from the record. It was also not clear as to whether the said bank accounts were declared by the assessee in the return of income regularly filed with the revenue from year to year for the earlier years and also whether the said cash in hand was accepted by revenue in the earlier year. Under such circumstances, in interest of justice and fair play, matter was set aside and restored to AO for fresh consideration for both the assessment years, viz. assessment years 2006-07 and 2008-09 for de novo adjudication.
REFERRED :
FAVOUR : Matter remanded.
A.Y. : 2006-07 & 2008-09
IN THE ITAT, ALLAHABAD BENCH
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