2025 (8) TMI 359

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....1961 ["the Act"] arising from the assessment order dated 07.12.2018 passed u/s 144 r.w.s 147 of the Act pertaining to assessment year 2011-12. 2. As per the grounds of appeal, the assessee has challenged the legitimacy of jurisdiction assumed under s. 147 of the Act as well as addition made by the AO towards term deposits/cash deposits in bank amounting to INR 2,40,58,618/-. 3. When the matter was called for hearing, the Ld. Counsel for the assessee adverted to the assessment order and submitted at the outset that jurisdiction was assumed by the AO under s. 147 of the Act on the premises that; (a) information was received by the AO through AIR/CIB that assessee had deposited cash of INR 2,40,58,618/- during the FY 2010-11 rel....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ssessee has properly disclosed investments in fixed deposits at INR 1,36,77,450/-. Similar fixed deposits of INR 1 crore was declared in the balance sheet for the immediately preceding AY 2010-11. The Ld. Counsel for the assessee thereafter, adverted to the bank statement and referred to the entries shown in the bank accounts maintained with Indus Ind Bank and Standard Chartered Bank. It was pointed out that in the Indus Ind Bank, total bank deposits stand at INR 1,24,500/- whereas INR 1 Lakh has been deposited in cash in Standard Chartered Bank during the year. The aggregate cash deposits thus stands at meager amount of INR 2,24,500/-. The AO on the other hand, yet again proceeded on wholly incorrect figure of INR 2,40,58,618/- as against ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....me has been entertained by the AO on the basis that the assessee has not filed the return of income for AY 2011-12 in question which is grossly contrary to the facts on record. It is demonstrated on behalf of the assessee that the assessee has duly filed return of income on 27.07.2011. Hence, the most basic reason of holding belief itself is wholly incorrect and not existed at the time of recordings of the reasons. Secondly, the premise of large cash deposits/term deposits giving birth to belief towards escapement is yet again demonstrated to be colossal misunderstanding facts and contrary to the material i.e. bank statement placed on record. 7. 'Reason to believe' is the starting point for re-opening a case. A freak foundation or reason....