Tribunal nullifies assessment order due to lack of reasons, emphasizes genuine source verification.

The Tribunal allowed the appeal challenging the validity of the reassessment order for the assessment year 2011-12. It found that the reassessment proceedings lacked proper recording of reasons for income escapement under section 147, rendering the assessment order null and void. The Tribunal emphasized the importance of verifying the genuineness of the Will presented by the appellant to establish the source of cash deposits in the savings bank account, setting aside the matter for re-adjudication with proper enquiry.

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Issues:
- Validity of reassessment order
- Relevance of cash deposits in savings bank account
- Source of cash deposits
- Genuineness of Will as evidence
- Conduct of assessment proceedings

Validity of Reassessment Order:
The appeal challenged the validity of the reassessment order for the assessment year 2011-12. The appellant contended that the reassessment proceedings were not conducted in accordance with the law, thus rendering the assessment order null and void. The appellant argued that the reassessment order was based solely on cash deposits in the savings bank account without proper application of mind by the assessing officer. The Tribunal noted the fundamental deficiency in recording the reason to believe for escapement of income under section 147, leading to the vitiating of the assessment order.

Relevance of Cash Deposits in Savings Bank Account:
The main issue revolved around the addition made by the Assessing Officer concerning cash deposits in the savings bank account of the assessee. The Assessing Officer initiated proceedings based on information regarding cash deposits in the account. The appellant claimed that the cash was inherited from the father and deposited after his death. However, the Assessing Officer raised doubts about the source of the deposits and the genuineness of the Will presented by the appellant.

Source of Cash Deposits:
The appellant explained that the cash deposited in the bank account was inherited from the father, supported by a Will executed by the father. The appellant argued that the Will was genuine and should be accepted as evidence of the source of the cash deposits. The appellant cited legal provisions and a Supreme Court judgment to support the validity of the Will and the requirement of attestation.

Genuineness of Will as Evidence:
The genuineness of the Will presented by the appellant became a crucial point of contention. While the appellant provided the Will as evidence of the source of cash deposits, the Assessing Officer and CIT(A) doubted its authenticity without conducting a proper enquiry. The Tribunal emphasized the need for verification of the Will's genuineness, including signatures and attesting witnesses, before drawing conclusions.

Conduct of Assessment Proceedings:
The Tribunal observed that the assessment proceedings lacked proper verification and examination regarding the genuineness of the Will presented by the appellant. Both the Assessing Officer and CIT(A) raised doubts without conducting necessary enquiries. The Tribunal set aside the matter for the Assessing Officer to re-adjudicate after conducting a thorough enquiry to establish the genuineness of the Will, emphasizing the importance of providing the appellant with a fair opportunity to present their case.

In conclusion, the Tribunal allowed the appeal for statistical purposes, highlighting the need for a proper investigation into the genuineness of the Will before making any conclusive decisions regarding the source of cash deposits in the savings bank account.

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