Inconsistent reassessment of bank deposits led to remand for fresh consideration after inadequate appreciation of assessee evidence.

A reassessment based on bank deposits could not be sustained where the Assessing Officer adopted an inconsistent approach and failed to properly consider the material produced by the assessee. The assessee had claimed that the deposits were commission-linked receipts from multilevel marketing activity, but the income was later estimated at 8% of the deposits without adequate appreciation of the record. The assessment was therefore set aside and remitted for fresh examination in accordance with law, with liberty to consider comparable cases from the same line of business and after giving the assessee due opportunity.

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Issues: Whether the reassessment and estimation of income based on the assessee's bank deposits could be sustained, and whether the matter required remand for fresh consideration.

Analysis: The reassessment proceedings arose from notice under section 147 of the Income-tax Act, 1961. The assessee produced available material to show that the deposits represented commission-linked receipts from multilevel marketing activity and that the Assessing Officer had initially proceeded on the basis of identified receipts before changing course and estimating income at 8% of the deposits. The record showed inconsistency in the approach adopted, and the available material had not been properly appreciated. In these circumstances, the appellate order could not be sustained and the assessment required a fresh examination, with liberty to consider comparable cases from the same line of business and after giving due opportunity to the assessee.

Conclusion: The matter was remitted to the Assessing Officer for fresh assessment in accordance with law, and the assessee succeeded to that extent.

Final Conclusion: The assessment was not affirmed on merits and the dispute was sent back for reconsideration, leaving the quantum of income open for a fresh lawful determination.

Ratio Decidendi: Where the Assessing Officer adopts an inconsistent approach and does not properly consider the material produced by the assessee, the assessment can be set aside and remitted for fresh adjudication after due opportunity.

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