2017 (4) TMI 1427

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....in law, on facts and in the surrounding circumstances of the case in failing to examine, on her own, the validity of reassessment proceedings in as much as the mere fact that cash deposits have been made in the bank account does not by itself, indicate that these deposits constitute an income, which has escaped assessment as per the settled law." 3. The ld. Counsel for the assessee pointed out the reasons recorded by the AO at page 3 of the paper book, which are reproduced hereinbelow: "On the basis of information received, it is found that Smt. Baby Yadav w/o Shri Bimlesh Kumar Yadav, the assessee deposited cash to the tune of Rs. 10,16,000/- in saving bank account held in her name, during the F.Y. 2007-08 relevant to A.Y 2008-....

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....All that the reasons recorded for reopening indicate is that cash deposits aggregating to Rs. 10,24,100/- have been made in the bank account of the assessee, but the mere fact that these deposits have been made in a bank account does not indicate that these deposits constitute an income which has escaped assessment. The reasons recorded for reopening the assessment do not make out a case that the assessee was engaged in some business and the income from such a business has not been returned by the assessee. As we do not have the liberty to examine these reasons on the basis of any other material or fact, other than the facts set out in the reasons so recorded, it is not open to us to deal with the question as to whether the assessee could b....

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.... and infructuous." 7. The said decision of the ITAT Delhi Bench has been followed by the ITAT Amritsar Bench [SMC] in the case of Gurpal Singh Vs. ITO vide ITA No. 631/ASR/2015 order dated 27.05.2016. The relevant operative paras 49 and 50 are reproduced hereunder: "49. Now, in keeping with Bir Bahadur Singh Sijwali [supra], this information cannot form a valid basis for initiating assessment proceedings under section 147 of the I.T. Act. As observed in the Bir Bahadur Singh Sijawali [supra] the mere fact that the deposits had been made in the bank account does not indicate that these deposits constitute income which has escaped assessment. 50. Thus, it was a mere suspicion of the AO, that prompted him to initiate asses....