TaxTMI 
TaxTMI 
2025 (9) TMI 451
X X X X Extracts X X X X
X X X X Extracts X X X X
....sel Mr. Karan Sanghani for the respondent. 2. Having regard to the controversy involved, with the consent of learned advocates for the respective parties, the matter is taken up for hearing. 3. Rule returnable forthwith. Learned Senior Standing Counsel Mr. Karan Sanghani waives service of notice of rule on behalf of the respondent. 4. By this petition under Article 226 of the Constitution of India, the petitioner has prayed for the following reliefs: "a) quash and set aside the impugned notice as well as the impugned order at ANNEXURE "A (Colly.)" to this petition; (b) pending the admission, hearing and final disposal of this petition, stay the implementation and operation of the impugned notice as well as impugne....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... the form of cash deposits during demonetization period to the tune of Rs. 1,08,11,007/-. 8. The petitioner filed a detailed reply to the show cause notice on 08.06.2022 contending that the petitioner had actually deposited Rs. 1,02,31,000/- during demonitisation period and not Rs. 1,08,11,007/- as the petitioner was having cash on hand in form of SBN available at the close of 08.11.2016 generated out of the business activities. The petitioner also filed audit report, relevant bank account statement for the entire year and the cash book. The petitioner also informed the respondent that cash deposits have been duly explained to Assistant/Deputy director of Income Tax (Investigation)-II Rajkot from time to time by filing reply and submissi....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... 13. It was further submitted that the reasons assigned by the respondent to come to the conclusion for reopening of the assessment is without any basis as there is no nexus between the information available with the respondent Assessing Officer and alleged escapement of income, more particularly, in view of the fact that the Investigation Wing of the department has already issued summons to the petitioner which were duly complied with by the petitioner by letters dated 18.04.2017, 05.05.2017, 07.03.2018 and 04.03.2021 which were also produced before the respondent Assessing Officer. It was therefore, submitted that the impugned order as well as notice are liable to be quashed and set aside. 14. On the other hand, learned Senior Stand....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... recorded that as per the cash book furnished by the petitioner, it was clear that the petitioner was holding large amount of cash in hand. However, the Assessing Officer was of the view that the petitioner being a prudent business man would never keep such huge cash on hand as idle money at the business premises and therefore, arrived at the conclusion that the petitioner failed to provide any justification for requirement of such huge cash on hand. 18. It also appears that the respondent Assessing Officer has brushed aside the replies filed by the petitioner in response to the summons issued under section 131A of the Act issued by Assistant/Deputy Director of Income Tax (Investigation)-II Rajkot by observing that the petitioner did not....