Malkiat Agro Vs DCIT (ITAT Chandigarh)
ITAT Chandigarh held that cash deposits in assessee’s bank account was less than the amount mentioned in the reopening notice and thus reasons recorded by the AO were not found to be valid and, therefore, the reassessment framed was quashed. Accordingly, appeal of assessee allowed.
Facts- The assessee is carrying on the business of manufacturing and sale of Harvesting Combines and other Agricultural Implements in the status of partnership firm, since 1988. The case of the assessee was reopened u/s. 148 for verification of financial transactions with regard to cash deposits in regular bank accounts of the assessee. AO made addition of Rs. 12,39,90,680/- on account of cash deposit. Being aggrieved, the present appeal is filed.
Conclusion- Held that the opening stock, purchases, sales and closing stock have been accepted by the AO therefore, there is no basis of making the addition of unexplained cash credit on account of cash deposits in the regular bank account of the assessee.
Held that the cash deposits in assessee’s bank account was less than the amount mentioned in the reopening notice and it was held that the reasons recorded by the AO were not emerging from the record available with him and the AO having recorded the reasons which were not found to be valid and, therefore, the reassessment framed was quashed.
