TaxTMI 
TaxTMI 
2025 (5) TMI 99
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....ly stated, the facts of the case are that notice dated 24/03/2020 u/s 148 of the Act was issued by the AO asking the assessee to file his return of income. Vide notice issued u/s 142(1), dated 03/02/2021, the assessee was asked to furnish compliance on certain queries :- "1. The reason for reopening of your case for AY 2013-14 is as under: 1. The assessee is an individual and he has not filed return of income for AY 2013- 14. 2. As per Information//TS/ 360 Degree details available with this office for the A.Y. 2013-14, it is found that the assessee has deposited cash amount of Rs. 24,00,000/- in his bank accounts maintained with /C/C/ Bank. Hence, after obtaining prior permission of the Pr. CIT-3. Ahmedabad, notice u/s 133(6) of the Act has been issued to the concerned bank/branch. In response to the same. the assessee has submitted reply. However, the same was not found acceptable and needs further verification. 3. As per information available with this office, it is found that the assessee has deposited Rs. 24,00,000/- by cash in his bank account. The notice u/s. 133(6) of the I. T. Act issued to bank after toking prior permission of Hon'bl....
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....se (a) of Explanation 2 to section 147 are applicable to facts of this case and the assessment year under consideration is deemed to be a case where income chargeable to tax has escaped assessment. In this case more than four years have lapsed from the end of assessment year under consideration. Hence, necessary sanction to issue notice u/s. 148 is requested from the Principal Commissioner of Income Tax as per the provisions of section 151 of the Act. 2. In your case, notice under section 148 of the Income-tax Act, 1961 was issued on 24.03.2020 wherein it was requested to furnish ITR for the AY 2013-14 in response to the said notice. However, it is seen that till date you have not furnished ITR for A.Y. 2013-14 Therefore you are once again requested to furnish the ITR for A.Y. 2013-14 in pursuance of notice under section 148 of the Income-tax Act, 1961 dated 24.03.2020. 3. In this regard you are requested to submit the following details: i) Please furnish your computation of income for the A.Y. 2013-14. ii) It is noticed that during the F.Y: 2012-13, there was deposit of Rs. 24,00.000/- in cash in ICICI Bank. In view of this you are requ....
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....ey under consideration had been deposited by my parents from their past savings/pin money. Accordingly, I submit that my case is not the case of any income escaping assessment and thus needs to be dropped. The reason I could not submit my ITR earlier after receiving notice under section 148 was due to pandemic. I believe Govt, of India has granted a general extension of dates in this regard till 31/03/2021. However, now I have submitted my return for AY 2013-14 online and copy of my computation of income as asked in the notice is attached herewith. The copy my bank statement, as asked in the notice, is also attached herewith. I would also like to mention that the information regarding cash deposit by me had been earlier made available to me through compliance portal of Income Tax Department against which I had submitted my reply online on 3rd of August 2015 vide Acknowledgement Number 11690023030815 (copy attached). It is clear that department was having this information with them in the year 2015 itself still they chose to reopen the case only in the month of March 20. Your notice is dated 3^rd of February and I have been asked to submit my repl....
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....idences submitted by you are not justifying the cash credits appearing in your bank account. In absence of any corroborative evidence, you are requested to show cause as to why the cash credits of Rs. 24,00,000/- deposited on various dates in the bank account No. 029501001945 of ICICI Bank should not be treated as your unaccounted cash credit/cash deposits from unexplained sources for the year under consideration and assessed accordingly. 4. As the assessment is a time barring one i.e. getting barred by limitation on 30.09.2021, your co-operation is solicited in completion of the assessment proceedings in your case. Therefore, keeping in mind the principle of natural justice, an opportunity to submit the details/information requisitioned vide the said notices/letters is provided herewith. 5. Your reply, if any, should reach to the undersigned online electronically in 'E- Proceeding' facility through your account in e-filing website [www.incometax.gov.In]on or before 27.09.2021 at 2:00 P.M. No further opportunity will be granted to you in this matter, which may please be noted." 7. The assessee filed a detailed reply which reads as under :- S....
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.... of section 139(1), the assessee ought to have filed Return of Income as he has visited a foreign country during the relevant Assessment Year. It is submitted for your kind information that the provision you are referring to has been made inapplicable long back w.e.f. 01-04-2006. 5. Assessee still maintains that there are no valid reason to believe that there is income escaping assessment in his case and thus again requests that assessment proceeding against him may kindly be dropped. 6. Further to my above submissions, I am reproducing below, the submissions I have made to National Faceless Assessment centre in response to their notice in the matter: i. From January 2011 to May 2015,1 was a student of Aero Space Engineering course in Florida Institute of Technology, USA and was studying in USA itself(copy of my Student I'd Card attached). Being away from India since 2011, there was no occasion for me to earn any income in India during financial year 12-13 (AY 13- 14). ii. The cash which has been deposited in my bank account is savings of my mother out of her pin money and savings of my father out of his salary income. I am attaching bank sta....
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....s no occasion for me to deposit cash in his Indian bank account. b. Sworn affidavits of my parents, confirming that money in my account had been deposited by them, out of there earnings and savings, in order to fund my education expenditure in USA. Income tax returns of my father for AY 10-11 to AY13-14 are also attached. Based on above, I again submit that the cash deposit in my bank account is not mine but of my parents, who have deposited it from their earnings and savings. 2. I also maintain that the whole reopening of my case is without any jurisdiction as the reasons taken by your goodself for reopening can not be equated with reasons to believe that income has escaped assessment. The rejection by your goodself of my objections for reopening is devoid of any merits. 3. I would also like to bring to your kind notice that judiciary has unequivocally held that mere cash deposit in the bank can not be a reason for reassessment. Following are some important citations in this regard : * Ashish Natvarlal Vashi Vs. The Income Tax Officer, Ward-1, Navsari (ITA NO.3522/AHD/2016- SURAT BENCH)- Held as follows o We note that Assessing....
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..... ITO (ITANo. 3985/Del/2017 A.Y. 2007-08 * Shri Bhajan Lal, Delhi vs, ITO, Ward-2, Narnaul, Haryana in ITA.No.3984/Del./2017 (ITAT Delhi) * Shri Hashmukhbhai B. Patel (in ITA No. 193/SRT/2019) * Mahavir Prasad vs. ITO in ITA.No.924/Del./2015 Based on above, I request you to kindly drop the reassessment proceedings as the same is without any jurisdiction." 8. A perusal of the aforementioned enquiries made by the AO show that specific queries were raised in respect of cash deposited in the bank account to which, specific replies were filed along with justification of the cash deposit with its source. After thorough examination, the AO took a plausible view in accepting the source of cash deposit. 9. By assuming jurisdiction conferred upon him by the provisions of Section 263 of the Act, the ld. CIT revisited the same facts and came to the conclusion that the assessment order dated 29/09/2021 is not only erroneous but prejudicial to the interest of the revenue. 10. The issues raised by the ld. CIT in assuming jurisdiction u/s 263 of the Act, we find that all the issues have been considered by the AO during his enquiries before framing the i....
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....onducted by the CIT and he is able to establish and show the error or mistake made by the Assessing Officer, making the order unsustainable in Law. In some cases possibly though rarely, the CIT can also show and establish that the facts on record or inferences drawn from facts on record per se justified and mandated further enquiry or investigation but the Assessing Officer had erroneously not undertaken the same. However, the said finding must be clear, unambiguous and not debatable. The matter cannot be remitted for a fresh decision to the Assessing Officer to conduct further enquiries without a finding that the order is erroneous. Finding that the order is erroneous is a condition or requirement which must be satisfied for exercise of jurisdiction under Section 263 of the Act. In such matters, to remand the matter/issue to the Assessing Officer would imply and mean the CIT has not examined and decided whether or not the order is erroneous but has directed the Assessing Officer to decide the aspect/question. This distinction must be kept in mind by the CIT while exercising jurisdiction under Section 263 of the Act and in the absence of the finding that the order is erron....