TaxTMI 
TaxTMI 
TaxTMI 
2017 (8) TMI 1131
X X X X Extracts X X X X
X X X X Extracts X X X X
....t the time of hearing, it was noticed that there is delay of 44 days in filing the appeal before the Tribunal for which the Defect Memo was issued at the time of filing of the appeal. The Assessee has filed the application dated 21.2.2017 for condonation of delay stating therein that the case of the assessee was assessed u/s. 144/147 and the assessment order was passed by the Ld. CIT(A) on 21.12.2016. The assessee is a widow of approx. 61 years of age and is physically handicapped. She is completely bed ridden due to tragic accident since long time. Hence the assessee was not present at her residence and there was delay in receiving CIT(A) order and also not able to sign the required documents. Therefore, there is delay of 2-3 days in filing appeal. Hence, it was requested that in the principles of natural justice delay in filing ITAT appeal be condoned. 3. Ld. DR opposed the request for condonation of delay. 4. I have heard both the parties and perused the records. I find that during the hearing, Assessee's AR has filed the documents for condonation of delay vide letter dated 2.8.2017 and stated that Ld. CIT(A)'s order in the case of the assessee was passed on 11.11.2016 and was....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ment revealed that the assessee has peak balance of Rs. 5,55,000/- on 19.9.2008 and added the same to the total income of the assessee vide order dated 26.2.2015 passed u/s. 144/147 of the I.T. Act, 1961. Against the assessment order, the Assessee appealed before the Ld. CIT(A), who vide his impugned order dated 11.11.2016 has partly allowed the appeal of the assessee. 6. Aggrieved with impugned order dated 11.11.2016, assessee filed an appeal before the Tribunal. 7. Ld. Counsel of the assessee has stated that AO has erred in initiating provisions of section 148 of the Income Tax Act, 1961 and also erred in treating the cash deposits as income escaped assessment. It was further stated that the case was assessed u/s. 144 of the I.T. Act and demand was raised on baseless information, which needs to be deleted. 8. On the contrary, Ld. DR relied upon the orders of the authorities below. 9. I have heard both the parties and perused the records and gone through the orders of the authorities below, especially the contention raised in the grounds of appeal. I find that issues in dispute have been thoroughly discussed and adjudicated by the Ld. CIT(A) vide para no. 3.2 at page no. 7 to ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....s free to initiate proceedings under section 147. It is observed that the Assessing Officer had the reason to believe that income chargeable to tax had escaped assessment and it had a rational nexus with the material before him alongwith the information with him. He had reason to believe that income chargeable to tax has escaped assessment and duly recorded the reasons for the same. In this case there is no change in opinion of the Assessing Officer as the matter was never investigated or adjudicated or information on the issue was called or examined by the Assessing Officer. It may be mentioned here that as mentioned by the AO, the Appellant had been issued a letter for verification of the deposits which was however not responded to, therefore the Appellant's contention that the AO did not verify the deposits before issuing the notice also u/s. 147 cannot be accepted. Therefore, relying on the various case laws as discussed above and facts and circumstances, the issuance of notice u/s. 148 is held to be valid. These grounds of appeal are therefore dismissed." 5. Ground of Appeal No. 5 is against the addition of Rs. 5,55,000/- as income from other sources. The AO in his order has....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ssed with him. And when asked to produce source of deposit of Rs. 5,50,000/- dated 19-09-2008, he was not able to produce any detail and source of deposit.' In view of the above circumstances, the then A.O. is seems to be correct in completing the assessment on income of Rs. 5,50,000/-." A copy of the above Report was made available to the Appellant and in the Rejoinder dated 8/11/16 to the same her AIR has stated as under:- "a. The reasons recorded for reopening of assessment are merely based on the cash deposits made by the appellant without having any other adverse material on record. Therefore the jurisdiction assumed u/s 147 is illfounded especially in view of the decisions and pronouncements relied upon by the appellant. b. Sir, the total estimation, surmises, hypothesis and presumptions rotate around the assumption that the assessee is having a taxable income which has been deposited in the bank account. The factual position is that the appellant is completely bed ridden for more than 10 years and cannot reasonably be expected to be engaged in any business activity. The amount deposited in her bank account on different occasions is out of the money collected by her....
X X X X Extracts X X X X
X X X X Extracts X X X X
....income has escaped assessment within meaning of section 147. Issue notice u/s. 148 for initiating proceedings u/s. 147 0f the Income Tax Act, 1961,for A.Y.-2009- 10." From the above it is observed that the AO did have material or facts that could lead him to the prima facie conclude, that there was escapement of income and "reasons to believe" were duly recorded that basis. In addition the Hon'ble Punjab and Haryana High Court in the case of Jawand Sons vs. CIT reported in 326 ITR 39 (P&H) has held that vide powers after 02.04.89 has been given to the Assessing Officer to re-open the assessment even where full facts have been disclosed and the only conditions that Assessing Officer should have reason to believe that income has escaped assessment. At the stage of issue of notice, the only question is whether there was relevant material on which a reasonable person could have formed a requisite belief. Whether the materials would conclusively prove the escapement is not the concern at that stage. This is so because the formation of belief by the Assessing Officer is within the realm of subjective satisfaction. The Hon'ble Supreme Court in the case of ITO v. Selected Dalur....