TaxTMI 
TaxTMI 
TaxTMI 
2021 (3) TMI 353
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....ear 2009-10, the AO reopened the case of the assessee after recording the following reasons :- "As AIR information for F.Y. 2008-09 received in this office, the assessee has made cash deposits of Rs. 36,98,000/- during the F.Y. 2008-09 relevant to the assessment year 2009-10 in his bank account with Gurgaon Gramin Bank, V Berli Kalan, Rewari. The PAN of the assessee is lying with this office. As per records of this office the assessee has not filed his/her return of income for the above mentioned assessment year. I, therefore, have reasons to believe that the assessee has deposited cash in his bank account out of his income from unexplained sources. Accordingly income to the extent of Rs. 36,98,000/- chargeable to tax and any other inco....
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....oted that the assessee has deposited cash of Rs. 16,98,000/- only and not Rs. 36,98,000/-. The assessee explained the deposits in the bank account as out of earlier withdrawals. However, the AO was not satisfied with the explanation given by the assessee. Rejecting the various explanations given by the assessee and following the decision of Hon'ble Supreme Court in the case of Sumati Dayal vs. Commissioner of Income Tax reported in (1995) 214 ITR 801, Kale Khan Mohammad Hanif vs. CIT reported in 1963 50 ITR 1 and various other decisions, the AO finally made addition of Rs. 8,90,000/- being the peak balance of Rs. 8,90,000/- on 17.04.2008. 4. Before the Ld. CIT(A) the assessee apart from challenging the validity of reassessment proceedings ....
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....ment and it is not necessary that fact of income having escaped assessment is proved to the Hilt. What is necessary is that there must be something which indicate even if not establishes escapement of income The material must indicate income escaping assessment rather than desirability of further probe in the matter. 4.3 In the instant case, the reasons were duly recorded before issuing the notice u/s 148 of the Act. The A.O. was of the belief that the assessee has not disclosed his correct income as there were heavy cash deposits in the bank account during the F.Y. 2008-09. The assessee had not filed his return of income for this financial year as ascertained by the AO and this further became the basis of AO's prima facie belief that inc....
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....,000/- declared in the return of income. 6. Aggrieved with such order of the Ld. CIT(A), the assessee is in appeal before the Tribunal by raising following grounds :- Ground No. Grounds of Appeal 1 That the learned Commissioner of Income Tax (Appeals) has grossly erred both in law and on facts in upholding the initiation of proceedings under section 147 of the Act and, completion of assessment under section 147/143(3) of the Act without appreciating that the same were without jurisdiction and hence deserved to be quashed as such. 1.1 That the learned Commissioner of Income Tax (Appeals) has failed to appreciate that there was no specific relevant, reliable and tangible material on record to form a "reason to believe" that income of t....
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....and by recording vague, misconceived and erroneous conclusions which are contrary to facts and therefore, untenable. Prayer It is therefore, prayed that, it be held that assessment made by the learned Assessing Officer and sustained by the learned Commissioner of Income Tax (Appeals) deserves to be quashed as such. It be further held that addition made and sustained by the learned Commissioner of Income Tax (Appeals) be deleted and appeal of the appellant company be allowed. 6. I have considered the rival arguments made by both sides, perused the orders of the AO and Ld. CIT(A) and the paper book filed on behalf of the assessee. I have also considered the various decisions cited before me. The reasons recorded by the AO while reopening ....
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....ation from DIT (Investigation) that assessee had received accommodation entry but there was no independent application of mind by Assessing Officer to tangible material and reasons failed to demonstrate link between tangible material and formation of reason to believe that income had escaped assessment, reassessment was not justified. 9. I find the coordinate bench of the Tribunal in the case of SBC Realtors Pvt. Ltd. vs ITO in ITA No. 7791/Del/2018 order dated 1st April, 2019 has also quashed the reassessment proceedings based on the information provided by the investigation wing without any independent application of mind by the AO. The various other decisions relied on by the Ld. Counsel for the assessee also supports his case to the pr....