TaxTMI 
TaxTMI 
2024 (5) TMI 1016
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....l, the legality of reopening of the assessment and also the taxability of Rs. 26,21,634/-. 2. The relevant facts, in brief, are that the appellant/assessee deals in mobile phone accessories. During the relevant year the Assessing Officer [In short, the 'AO'], based on the AIR information, reopened the case of the assessee on the reasoning that the cash deposits aggregating to Rs. 24,92,670/- made by the appellant/assessee, who was non-filer of the income tax return, in his bank account in the relevant year, was nothing but the income escaped assessment. 3. After reopening the assessment, the AO issued various notices u/s 142(1) of the Act as detailed in para 4 of the assessment order. However, the appellant/assessee failed to ensure compl....
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....various noting in the format of recording the reasoning for reopening the assessment by the AO and approval of the same under section 151 of the Act by the PCIT, contended that the reopening was mechanical in nature as section 147(a) of the Act mentioned in the reopening format by the AO was not inexistence since 1988 onward. 4.2 Further, it was contended by the Ld. AR that the AO was not sure of the quantum of cash deposits in the bank account and that was why he mentioned the sum/cash deposit in bank account might vary in assessment. The Ld. AR also claimed that the AO had not carried out any field inquiry before reopening the assessment for ascertaining the truth. It was also contended by the Ld. AR that the AO had failed to serve any n....
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....ould not press the legal ground i.e. reopening the assessment, if the income would be determined @ 8% of the cash deposits as done in the reopened assessment of the preceding year in similar facts and circumstances by the AO. 5. The Ld. Sr. DR placing reliance on the findings of the AO and the CIT(A) prayed for dismissal of the appeal. 6. Heard both the parties at length and perused the material available on record. 7. We find force in the arguments and contentions of the Ld. AR. We are surprised to see two different findings of the AO on similar sets of facts in reopened assessments of the appellant/assessee; one in the AY 2011-12 and another in the 2012-13. The assessments of these two years; AY 2011-12 and 2012-13 were reopened on the....