TaxTMI 
TaxTMI 
2021 (7) TMI 45
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....that the notice issued u/s. 148, the initiation of proceeding u/s. 147 and the consequent assessment order passed is illegal and bad in law. 2. That on the facts and circumstances of the case and the provision of law the Ld CIT Appeal has failed to appreciate that impugned assessment order passed by the learned assessing officer is against the principles of natural justice and has been passed without affording reasonable opportunity of being heard. 3. That on the facts and circumstances of the case and the provisions of law the Ld CIT Appeal has erred in sustaining an addition of Rs. 15,81,000/- on account of cash deposited in the bank as income of the appellant from undisclosed sources. 4. That the appellant crav....
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....ab National Bank, Nehru Nagar, Ghaziabad (UP) 2. Purchase property for Rs. 35,10,000/- on 16.05.2011 registered with Sub-Registrar-IV, Ghaziabad, UP." 8. In view of the above information, the Assessing Officer initiated proceedings u/s. 147 of the Act and notice u/s. 148 of the Act dated 06.02.2014 was issued to the assessee. Several notices were issued to the assessee but nobody attended and no details were filed. Finally, a show cause notice dated 13.02.2015 was issued asking the assessee to file source of cash deposit of Rs. 19.83 lakhs and the source of property purchased of Rs. 35.10 lakhs. 9. It was made clear to the assessee that if no reply is filed, then these amounts will be treated as "Income from undisclosed sourc....
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.... Vs. Rajesh Jhaveri Stock Broker Pvt. Ltd. and Jurisdictional Delhi HIGH Court judgment in the case of COMMISSIONER OF INCOME TAX VERSUS NOVA PROMOTERS & FINLEASE (P) Ltd. as cited above, the legal position is that at the stage of issuing the notice under Section 148 the merits of the matter are not relevant and the Assessing Officer at that stage is required to form only a prima facie belief or opinion that income chargeable to tax at escaped assessment. In the present case, the prima-facie information/evidences in possession of the A.O. is credible enough TO form the reason to believe. Therefore, the A.O. has rightly issued the notice u/s. 148 of the Act. Accordingly, appellant's ground of appeal is dismissed." 13. On merits of the....
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....ssessment in a situation where initial return is processed u/s. 143(1) of the Act, the Assessing Officer can form reasons to believe that income has escaped assessment by examining the very return and/or document accompanying the return. 18. The returned income of the assessee was Rs. 2.76 lakhs. The admitted business receipt of the assessee is around Rs. 3 lakhs. The Assessing Officer had information that the assessee has deposited Rs. 19.83 lakhs in her bank and has purchased property of Rs. 35.10 lakhs. Details given in the return of income are not commensurate with the cash deposited and property purchased. Therefore, it can be safely concluded that the Assessing Officer had reasons to believe and form an opinion that income has esca....