TaxTMI 
TaxTMI 
2020 (3) TMI 1421
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....ed hence, the same are also dismissed. For the sake of convenience, the ground nos. 1 to 3 on the merit, as argued by the Ld. Counsel for the assessee are reproduced as under:- 1. "On the facts and circumstances of the case, the order passed by the Ld. CIT(A) is bad, both in the eye of law and on the facts. 2. On the facts and circumstances of the case, the Ld. CIT(A) has erred both on facts and in law in rejecting the contention of the assessee that the initiation of the reassessment proceedings and the reassessment order are bad both on facts and in law and liable to be quashed as the statutory conditions and procedure prescribed under the statute have not been complied with. 3. On the facts and circumstances of the case, the Ld. CI....
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....el for the assessee submitted that Ld. CIT(A) has erred in rejecting the contention of the assessee that the initiation of the reassessment proceedings and the reassessment order are bad both on facts and in law and liable to be quashed as the statutory conditions and procedure prescribed under the statute have not been complied with. It was further submitted that Ld. CIT(A) has erred in rejecting the contention of the assessee that the reassessment order passed by the AO is bad and liable to be quashed as the same has been reopened on the basis of the reasons which are vague and has been recorded without application of mind on the part of the AO. To support his aforesaid contention, he filed the written submissions as well as Paper Book co....
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....sessee. Subsequently provisions of section 147 of the I.T. Act, 1961 were invoked and after obtaining necessary approval from the Appropriate Authority, statutory notice u/s 148 of the Act dated 23.03.2016 was issue to the assessee..." 6. On perusal of the above order, it is evident that the AO reopened the case of the assessee merely on the basis of suspicion that the income of the assessee has escaped assessment. It is a settled that notice u/s 148 of the Act cannot be issued merely on the basis of the insufficient compliance to the letters issued by the department. There must be a something which indicates, even if it does not establish, the escapement of income from assessment. Merely because some further investigations have not been c....
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....sment of income because the assessee has Rs.10,24,100 in his bank account but then such an opinion proceeds on the fallacious assumption that the bank deposits constitute undisclosed income, and overlooks the fact that the sources of deposit need not necessarily be income of the assessee. Of course, it may be desirable, from the point of view of revenue authorities, to examine the matter in detail, but then reassessment proceedings cannot be restored to only to examine the facts of a case, no matter how desirable that be, unless there is a reason to believe, rather than suspect, that an income has escaped assessment. {Para 8} In view of the reasons set out above, as also bearing in mind entirety of the case, the reasons recorded by the Asse....