2019 (7) TMI 1779

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.... facts of the case are that the case was reopened on the basis of information available with the department that assessee has made cash deposit of Rs. 10,07,400/- in assessment year under appeal in his bank account. The assessee did not file return of income. The A.O. issued query letter to the assessee to furnish copy of the ITR and details/explanation regarding cash deposit in the bank account. However, assessee did not furnish any reply. The A.O, therefore, reopened the assessment under section 147 of the I.T. Act. The A.O. made the addition of Rs. 10,07,400/- on account of unexplained cash deposit in the bank account. The A.O. further made addition of Rs. 1,95,975/- on account of unexplained investment. The Ld. CIT(A) partly allowed the....

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....eason to believe that an income of Rs. 10,07,400/- as stated above has escaped assessment in the hand of the assessee for the year under consideration. I am satisfied that the case of the assessee is a fit case for action u/s. 147 of the Act by reason of assessee's failure to disclose fully and truly all the material facts necessary for assessment. Place : Navsari Date : 07.03.2017. Sd/-S.D. Parmar Income Tax Officer, Ward-2, Navsari." 4.1. He has submitted that mere cash deposit in the bank account would not disclose escapement of income. He has submitted that there was no taxable income in the case of assessee, therefore, no return was filed. No proceedings were pending before A.O, therefore, query letter dated 03.02.2017 could ....

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.... so as to show that he formed an opinion based on any material that such deposits represented income. Keeping in view the facts and circumstances of the present case and the case law applicable in the case of the assessee, I am of the considered view that the reopening in the case of the assessee for the asstt. Year in dispute is bad in law and deserves to be quashed." 5. On the other hand, Ld. D.R. relied upon the Orders of the authorities below and submitted that A.O. received information that assessee made cash deposit in the bank account which is not explained, therefore, reopening of the assessment is valid in the matter. 6. We have considered the rival submissions and perused the material on record. It is well settled Law that valid....