TaxTMI 
TaxTMI 
2017 (6) TMI 491
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....n both the appeals. Therefore for purpose of disposal of both the appeals I decide the appeal of assessee for asstt. year 2011-12 as under :- ITA No. 970/DEL/2017 Assessment Year : 2011-12 2. I have heard Ld. Representatives of both the parties and perused the material on record. 3. In this appeal assessee challenged the assumption of jurisdiction u/s 147 to 151 of the I.T. Act and additions of Rs. 13,91,657/-. 4. Briefly the facts of the case are that assessee filed return of income declaring income at Rs. 2,37,940/- on 29th March, 2013. The AO noticed that there were total cash deposits of Rs. 63,27,996/- in assessee's saving bank account with Punjab National Bank, Corporation Bank and Axis Bank, Rudrapur. The assessee was ....
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....ee was required to furnish following information :- (i) Details of cash deposit of Rs. 63,27,996/- during the F.Y. 2010-11. Also produced other details of investment other than mentioned above effected during the year with full details. (ii) Produce your statement of all Bank Account in your name or in name of your dependent family members. Also give detailed narration of each credit and debit entry reflecting in Bank Statement explaining the source/purposes thereof. (iii) If you are farmer, furnish copy of khasra-khatuni evidencing ownership proof and also the proof of selling of agriculture produce relating to the period under consideration. (iv) If you are assessed to tax, then furnish your PAN, copy o....
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....e absence of reply of the assessee formed the opinion for reopening of the assessment. The deposit in the bank account by itself would not give reasons to the AO to believe income has escaped assessment. Mere deposit in the bank account would not prima facie makes out a case of reopening of the assessment. He has further submitted that the AO in the reasons recorded incorrect fact of deposits of Rs. 63,27,996/- despite the total deposits were only to the tune of Rs. 41.15 lacs. This fact is considered favourably by Ld. CIT(A) and his findings are in para 5.3 of the appellate order. Therefore wrong facts are recorded in reasons for reopening of assessment. Therefore assumption of jurisdiction u/s 147 of I.T .Act is bad in law. He has relied ....
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....t perspective and he sought to reopen by conceiving a fact that the assessee failed to respond to the query raised about this investment. As noticed in the submissions of Ld. Counsel for the assessee, I am of the view that there was no proceedings pending before the AO when he sought the clarification of the assessee vide alleged query notice dated 23rd January, 2012. The ITAT Amritsar Bench has dealt with this issue elaborately and recorded a finding that under the income tax Act, there is no such procedure to conduct an enquiry for collecting the information without pendency of assessment proceedings. If this reasoning is being excluded from the copy of the reasons given by the AO, then, nothing will remain with the AO except the informat....
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....unds of appeal as they have become infructuous." 3) order of ITA Delhi Bench in the case of Raj Kumar Dugar (HUF) vs. ITO 12 DTR 16 in which it was held as under :- "Reason recorded by the AO that assessee had not filed IT return for asstt. year 1998-99 being based on incorrect facts because assessee had in fact filed IT return for the said year, issuance of notice under section 148 and consequent assessment could not be sustained; further, assessment could not be reopened in the absence of any fresh material to show that income has escaped assessment and reopening for making fishing inquiry was not valid." 8. On the other hand Ld. DR submitted that prima facie case was made out for reopening of the assessment. Therefor....
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....etter of enquiry to the assessee, therefore such enquiry letter was not valid in eyes of law. The assessee was not required to respond to this invalid and non est letter of inquiry issued by the AO. The AO in the absence of reply from the assessee presumed that income to the extent of deposits had escaped assessment. The deposit in the bank accounts per se cannot be the income of assessee. It was mere suspicion of the AO based on incorrect facts that income chargeable to tax has escaped assessment. According to section 147 of the I.T. Act the AO shall have reason to believe that any income chargeable to tax has escaped assessment. Therefore the belief of the AO should be based upon some specific and tangible material for the purpose of reop....