TaxTMI 
TaxTMI 
2024 (7) TMI 209
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....ment Year: 2010-11. 2. The assessee has raised the following grounds of appeal: "1. On the facts and circumstances of the case, the Ld. CIT(A) vide order u/s 250(6) dated 22.11.2023 has erred in confirming the addition made by the Ld. AO vide order u/s 147 r.w.s 144 on account of deposit of Rs. 29993431/- in J&K bank account no 07248620000329 and Rs. 18807964/- in HDFC Bank account no 07241930003009. 2. That the Ld. CIT(A) has erred in confirming the addition of Rs. 48801396/- made by the AO ignoring the fact that the notice u/s 148 was issued merely on the basis of AIR information 3. That the CIT(A) has erred in not appreciating the fact that the reasons recorded before re-opening were based upon incorrect facts. That the AIR inform....
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....n commission basis and has also accepted the net profit rate of 0.6%. 8. That without prejudice to the aforesaid, the Ld. CIT(A) has erred in confirming the addition on ' account of deposits in HDFC bank account without appreciating that the Ld. AO has not allowed the benefit of bank withdrawals, opening cash in hand, debits in bank account. 9. That the Ld. CIT(A) has erred in confirming the addition of Rs. 18807964/- in HDFC' Bank account on surmises and conjectures and without bringing on record any material to prove that the appellant was in receipt of any income other than business income from business. 10. That the appellant craves leave to add or amend I the grounds of appeal before the appeal is heard and disposed off."....
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.... noted that the Ld. CIT(A) has confirmed the addition of Rs. 48,80,1396/- made by the AO on account of deposits in two bank accounts without any application of mind and without considering the submissions of the assessee that the certificate of the J&K Bank that proved the very foundation of the reasons recorded for reopening of the assessment u/s 147 of the Act was based on assumption of wrong facts. 7. From the above, it is evident that the CIT(A) failed to acknowledge the fact that the reopening was made on wrong assumption of facts, by not appreciating the information regarding deposit in J&K bank account 07248620000329 amounting to Rs. 2,99,93,431/- does not pertain to the appellant. In our view, the CIT(A) has committed a factual and....
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..../s 133(6), there were only deposits of Rs. 74,41,900/-. for which, he has made the addition. In our view the very formation of belief by the Assessing Officer is not valid. We have gone through the judgments, relied upon by the Ld. Counsel in the cases of 'Sh. Gaurav Joshi', 'Smt. Monika Rani', !Sh Jaspal Singh' and 'M/s Kapoor Rice & Gen. Mills' [2019 (1) TMI 1893 - ITAT AMRITSAR] - In all these cases, it has been held that where wrong facts have been recorded for formation of reason to believe, the assessment proceedings deserve to be quashed. Also relying on GURDISH KAUR KHULLAR case ,2022 (3) TMI 122 - ITAT CHANDIGARH] there were wrong reasons recorded for the purposes of formation of belief for issuance of notice u/s 148 in the pre....