TaxTMI 
TaxTMI 
2015 (10) TMI 1712
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....f natural justice and against the provisions of I.T. Act, 1961. 2. The Ld. CIT(A) has grossly erred on facts as well as in law in not holding that notice u/s. 148 is invalid and without jurisdiction. 3. The Ld. CIT(A) has grossly erred on facts as well as in law in not annulling the assessment order based on an invalid / illegal notice u/s. 148. 4. The Ld. CIT(A) has grossly erred on facts as well as in law in holding that bank pass book is books of accounts for the purposes of section 68. 5. The Ld. CIT(A) has grossly erred on facts as well as in law in confirming the addition of Rs. 20,34,000/- u/s. 68 on account of cash deposited in the back account. 6. The Ld. CIT(A) has grossly erred on facts as well as in law in confirming the ad....
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....t, 1961 dated 29.3.2010, issued which remained un-complied. No return has been filed by the assessee u/s. 139(1) and even in response of notice u/s. 148 of the I.T. Act, 1961. Despite, issuing notices to the assessee u/s. 142(1) / 143(2) of the I.T. Act, 1961, neither assessee nor any representative from the assessee has attended the hearing. In the absence of return filed by the assessee u/s. 139(1) and in response of notice u/s. 148. The AO estimated the income of the assessee at Rs. 1,10,000/- being the minimum amount chargeable to tax and since no explanation alongwith source of cash deposit of Rs. 20,34,000/- in HDFC Bank was filed by the assessee, the same was treated as unexplained and added to the income of the assessee vide order d....
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....authorities may be upheld. 7. We have heard both the counsel and perused the records. We find that in the present case the undated reasons recorded by the AO for initiation of proceedings read as under:- "As per information received from the Asstt. Director of Income Tax (Inv.) Unit-II(2), New Delhi vide his letter no. F.No. ADIT (Inv.)/UnitII(2)/2009-10/96 dated 29.3.2010, that Mr. Shree Bhagwan Prop. M/s Shree Agencies has deposited in cash of Rs. 20,34,000/- in his saving bank account. "I have reason to believe that Rs. 20,34,000/- has escaped assessment and is to be taxed u/s. 68 of the I.T. Act, 1961." 7.1 On perusal of the aforesaid reasons indicates that notice uls 148 has been issued in a mechanical manner on the basis of vague....
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..... 5 lac has escaped assessment within the meaning of s. 147 of the IT Act, 1961." 7.2 From reading of the above, it is crystal clear that the aforesaid reasons do not satisfy the requirements of s. 147 of the Act. The reasons and the information referred to is extremely scanty and vague. There is no reference to any document or statement, except Annexure, which has been quoted above. Annexure cannot be regarded as a material or evidence that prima facie shows or establishes nexus or link which discloses escapement of income. Annexure is not a pointer and does not indicate escapement of income. Further, it is apparent that the AO did not apply his own mind to the information and examine the basis and material of the information. The AO acc....