TaxTMI 
TaxTMI 
2017 (2) TMI 1011
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.... unexplained cash credit u/s. 68 of the I.T.Act. v) Treating deposits in bank account No.978 amounting to Rs. 1,65,000/- as unexplained cash credit u/s. 68 of the I.T.Act. 2. The learned counsel for the assessee adverting to ground no.1 about validity of reassessment proceedings, it is contended that the original assessment was made u/s. 143(3) vide order dated 13.11.2009. All the issues pertaining to assessment were duly discussed and assessee's return was accordingly accepted. Assessments were reopened on the following reasons: "The case was selected for scrutiny under CASS on the basis of AIR Information viz. deposit of cash in SB account with Saraswat Co-op Bank Ltd. Rs. 24,19,000/- (A/c No.4603 and deposit cash in SB account with sa....
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....ssary for the assessment for that year in consequence of information in the possession of the AO and income to the extent of Rs. 1,18,91,942/- has escaped assessment within the meaning of section 147 of the I.T.Act, as the income chargeable to tax has been under assessed u/s. 143(3) and accordingly the case of the assessee is required to be reopened u/s. 148 of the Act, so as to reassess the assessee's correct income for A.Y. 2007-08." In the reasons, the AO himself has referred to the proceedings of the original assessment and alleges that the assessee did not file explanations. If that was the case, the addition would have been made in the original assessment. The recording of reason transpires that the AO developed second thought about....
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....by the assessee to the reopening. The reference was made by the A.O. to the decision in the case of Eastern Newspaper Society referred supra cannot be held to apply in the present case since the reopening has been done on facts and not law. To this extent it cannot be said that it is a case of change of opinion because the amounts have remain unexplained and therefore the A.O. is right in initiating proceedings u/s. 148 and inquire into the correctness of the claim of the assessee. In light of these observations the action of the A.O. is upheld. The ground no.1 to 4 are dismissed." 3. The learned counsel contends that learned CIT(A) looking at all these facts should have called for assessment record from the AO and should have verified wh....
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....e by the learned AO. There is merit in the contention of the learned DR that the original assessment order is very short and does not refer to agricultural income of the assessee, which indicates non-disclosure 5. Be that as it may, learned CIT(A) in the interest of justice should have called for assessment record and verified the proceeding sheet and correspondence between the AO and the assessee and considered the objections raised on the validity of section 147. It appears that this issue has been decided by the learned CIT(A) without verifying these aspects, which are relevant to decide ground no.1 In the entirety of facts and circumstances, interest of justice will be served if appeal is set aside and restored to the file of the CIT(A....