Assessment order annulled due to lack of justification for reopening. Unauthorized inquiries rendered jurisdiction assumption unauthorized.

The Tribunal annulled the assessment order and deleted the addition after finding that the Assessing Officer lacked proper justification and reasons for reopening the assessment under section 147 r.w.s. 143(3). The unauthorized inquiries conducted by the Assessing Officer rendered the assumption of jurisdiction under section 147 unauthorized. Consequently, the appeal of the assessee was allowed, and the addition on merits was deleted.

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Issues:
Notice under section 148, Reassessment order under section 147 r.w.s. 143(3), Addition on merits.

Notice under section 148:
The appeal was against the Order of the Ld. CIT(A) related to A.Y. 2009-10. The assessee challenged the notice issued under section 148 and the re-assessment order passed under section 147 r.w.s. 143(3) as illegal, bad in law, and without jurisdiction, besides challenging the addition on merits. The assessee argued that the notice under section 148 was not properly served as the address was incomplete and wrong, rendering the assessment framed under section 143(3)/147 unsustainable. The counsel cited various cases to support the argument, emphasizing the importance of proper notice service and reasons for reopening assessments.

Reassessment order under section 147 r.w.s. 143(3):
The assessee contended that the amount deposited in the bank account was from sale proceeds, not undisclosed income, challenging the addition made by the A.O. The counsel argued that the authorities failed to treat the deposit as undisclosed income, citing relevant judgments. The Tribunal found merit in the argument, emphasizing that the Assessing Officer did not provide reasons for reopening the assessment, which were crucial for justifying jurisdiction under section 147. The Tribunal noted that the assessment order lacked legitimacy due to unauthorized inquiries conducted by the Assessing Officer, leading to the conclusion that the assumption of jurisdiction under section 147 r.w.s. 148 was unauthorized. Consequently, the Tribunal annulled the assessment order and deleted the addition, allowing the appeal of the assessee.

Addition on merits:
The Learned Counsel for the Assessee argued that the A.O. did not have proper grounds to treat the amount deposited in the bank account as undisclosed income. The Tribunal agreed, highlighting the lack of justification for the addition and emphasizing the importance of providing reasons for reopening assessments. The Tribunal concluded that the assessment order lacked legitimacy due to unauthorized inquiries conducted by the Assessing Officer, leading to the annulment of the assessment order and deletion of the addition. The appeal of the assessee was allowed, and the addition was deleted.

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