Reassessment under section 147 is unjustified if existing disclosures are ignored by the Assessing Officer.

आदेश/ORDER

PER VINAY BHAMORE, JM:

This appeal filed by the assessee is directed against the order dated 23.04.2024 passed by Ld. CIT(A)/NFAC for the assessment year 2017-18.

2. The appellant has raised the following grounds of appeal :-

“1. Whether on facts and circumstances of the case, the reassessment proceedings u/s 147 valid in law in absence of reason to believe that any income has escaped assessment when the ld AO himself states that notice u/s 148 is issued to verify and make enquiry

2. Whether on facts and circumstances of the case, the reassessment proceedings u/s 147 valid in law in absence of any tangible material to indicate any escapement of income in the hands of the appellant.

3. Whether on facts and circumstances of the case, the ld AO having accepted the fact that cash deposit in bank account has been duly disclosed and return of income being duly filed, the reopening of assessment can be made without any indication that cash deposit represents income escaped assessment?

4. The ld CIT(A) erred in law and on facts in confirming addition of Rs 97,28,000/- as unexplained money u/s 69A made without following the due process of law and grossly violating the principles of natural justice.

5. The ld CIT(A) erred in law and on facts in confirming addition of Rs 97,28,000/- as unexplained money u/s 69A without appreciating that the cash deposit was fully explained and substantiated.

6. The appellant craves leave to add, alter, modify or substitute any ground of appeal at the time of hearing.”

3. Facts of the case, in brief, are that the assessee is an individual engaged in the business of Indian made foreign liquor & country liquor and has furnished its return of income on 02.11.2017 by declaring taxable income of Rs.12,15,090/-. The case of the assessee was reopened u/s 147 and notice u/s 148 was issued to the assessee on 31.03.2021. According to the Assessing Officer, the assessee did not file the return of income in response to notice u/s 148 nor did she submitted any explanation with evidences as to the source of the cash deposited in bank accounts. Accordingly, as per the Assessing Officer in the absence of any submission or compliance from the side of the assessee the assessment was completed by making addition of Rs.97,28,000/- which was deposited in the bank accounts as unexplained money u/s 69A r.w.s. 115BBE of the Act. The assessment order was passed u/s 147 r.w.s. 144 r.w.s. 144B of the IT Act by determining total income of Rs.1,09,43,090/- as against the income returned by the assessee in his original return of income at Rs.12,15,090/-.

4. Being aggrieved with the above assessment order, the assessee preferred an appeal before Ld. CIT(A)/NFAC. After considering the reply of the assessee, Ld. CIT(A)/NFAC dismissed the appeal filed by the assessee.

5. It is the above order against which the assessee is in appeal before this Tribunal.

6. Ld. AR appearing from the side of the assessee submitted before us that the order passed by Ld. CIT(A)/NFAC is unjustified. Ld. AR submitted before the bench that even the order passed by the Assessing Officer was also not justified since a proper online reply with all the relevant documents was furnished before the Assessing Officer on 16.03.2022. Ld. AR further submitted that the case of the assessee was reopened on the basis of information that the PAN number of Smt. Sulochana were linked with impugned bank accounts maintained with Bank of Maharashtra wherein cash of Rs.97,28,000/- was deposited and no return for the period under consideration was filed on the PAN numbe