Case Law Details
Rajesh Madanlal Partani Vs ACIT (ITAT Pune)
Addition on account of cash deposits can be made only if the source of the deposits remains unexplained
Addition on account of cash deposits can be made only if the source of the deposits remains unexplained. If, on the other hand, the cash deposits in the bank are from the regular books of account maintained by the assessee, then such transactions cannot be said to be unexplained. The ld. AR has taken the argument that the said bank account is part of the assessee’s regular books of account which was reflected in the balance sheet prior to the date of search. Under these circumstances, we set-aside the impugned order and remit the matter to the file of AO for examining if all the transactions, for which the addition has been made, were reflected in the assessee’s regular books of account maintained prior to the date of search. In case such entries find their place in the regular books of account maintained prior to the date of search, then obviously no addition can be made. In the otherwise scenario, the AO will consider the issue afresh as per law.
Issuance of notice under section 143(2) is necessary for completing assessment under section 153A
The ld. AR fairly pointed out that the Third Member bench of the Mumbai Tribunal in Sumanlala Bansal vs. ACIT (TM) vide its order dt. 20.5.2015 (ITA no. 525-530/Mum/2008), following the direct judgment of the Hon’ble Delhi High Court in Ashok Chaddha vs. ITO (2011) 337 ITR 399 (Del), has held that non-issuance of notice u/s 143(2) is not a requirement for completing assessment u/s 153A. However, relying on another judgment in CIT VS. N.S. Software (Firm) (2018) 403 ITR 0259 (Delhi), the ld. AR contended that the provisions of section 143(2) apply to the proceedings u/s 153A as well, even though it was not a direct issue before the Hon’ble High Court. In view of the fact that the ld. DR contended that the first notice u/s 143(2) of the Act was, in fact, issued within the stipulated period and further that the ld. AR also evinced interest in keeping the issue alive to be taken up before the higher forums rather than extensively arguing before the Tribunal, we decide this issue against the assessee without going further deep into it.
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