2018 (2) TMI 1580

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..... 2. With regard to the stay application, the facts emerging from the record are that a Writ Petition was filed before the Hon'ble Allahabad High Court by the petitioner/assessee seeking mandamus that no recovery be made from the petitioner during the pendency of the Stay Petition before the ITAT, Lucknow Bench. In the present case, the assessment order dated 16/10/2015 has been passed by the Income Tax Officer, Ward 1(3), Bareilly. Being aggrieved by the aforesaid assessment order, assessee preferred an appeal before the ld. CIT(A) which was dismissed by order dated 19/12/2016, against which assessee has filed an appeal along with stay application before the ITAT Lucknow Bench on 25/1/2017 and 7/2/2017 respectively. The assessee als....

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....diction, bad in law and be quashed. 02. Because the notice u/s 148 has been issued by Ld. AO on 23.03.2015 within 4 years of the end of the assessment year with the approval of the JCIT, the same is contrary to the provisions of section 151(2), bad in law and be quashed. 03. Because there being no nexus between the material and the reasons to belief that income has escaped assessment within the meaning of section 147, the entire- proceedings are without jurisdiction bad in law and be quashed. 04. Because mere deposits in bank account, without any material would not constitute reasons to believe, the reassessment proceedings are bad in law and be quashed. 7. The ld. A.R. of the assessee prayed that since the add....

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....nder section 147/148 of the Act are recorded. The ld. A.R. of the assessee vehemently argued that the Assessing Officer has simply stated that certain amounts were deposited in the bank account of the assessee and, therefore, he believes that the income has escaped assessment. There is no independent finding recorded by the Assessing Officer nor any specific reason brought out from any material on record to show that there was any income which has escaped assessment and without pointing out any defect, which is on the basis that certain amounts were deposited, the proceedings initiated under section 147/148 of the Act is unwarranted, illegal and beyond the spirit of law. The ld. A.R. of the assessee has also placed reliance upon the foll....

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....o the reasons so recorded, nor anything can be deleted from the reasons so recorded. The Hon'ble Bombay High Court in another case i.e. in the case of Hindustan Liver Ltd. vs. ITO (2004) 268 ITR 332 has observed that the reasons are required to be read as they are recorded by the Assessing Officer. No substitution or deletion or addition can be made to those reasons and no inference can be allowed to be drawn on the basis of the reasons not recorded. It is for the Assessing Officer to disclose and open his mind through the reasons recorded by him. The reasons recorded should be self-explanatory and should not keep the assessee guessing for reasons. In the present case, the reasons recorded states that cash deposits are made in the bank ....