TaxTMI 
TaxTMI 
2026 (3) TMI 1105
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.... was noticed that the assessee and his family members had deposited in account of the bank in cash for the impugned assessment year to the extent of Rs. 3,28,00,000/-. Statements had been recorded from the assessee, assessee's son and the Bank Manager. It was admitted by the assessee's son that the explanation for the money as deposited were to be given by the father as the money belonged to the father. The Bank Manager also admitted that the money had been deposited on behalf of the father. The father admitted that the money is belonged to him. Consequently, reasons were recorded and the assessment had been reopened. The reasons for reopening had been provided to the assessee. The assessee had responded to the reasons recorded. The respons....
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....the AO which has been Ld.CIT(A) in verbatim in page 17 of its order were not reasons to believe but for reasons to suspect. It was also the submission that the Ld.CIT-DR has not dislodged with any of the case laws which has been applied by the Ld.CIT(A) for giving relief to the assessee. It was also the submission that amounts deposited in the bank doesn't automatically become undisclosed income. It was submission that these amounts were relating to the earlier years and the same were liable to be taxed only in the years to which the amounts related. It was also submission that the assessment u/s.143(3) of the Act in the case of the assessee had already been done earlier for the impugned assessment year and consequently there was a violatio....
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.... recorded and reproduced in verbatim the reasons recorded for reopening, this admittedly is not disputed by either side. A perusal of the assessment order gives a picture of why the reasons were recorded. A Search & Seizure and survey operation had been done on Sona Sati Organics Group on 22/09/2016. A survey had been conducted on Bank of Baroda Bank, Buxar Branch. In Page 3 of the assessment order the AO has brought out the statements of the Manager of Bank Of Baroda, Buxar Branch has also been recorded. When such substantial evidence is available, insofar as the assessee admits that it is an undisclosed income of the assessee, the assessee's son admits that the money is belonged to his father and it is for the father to explain. The Bank ....
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....ding of reasons is not an assessment proceeding. It is a prelude to the reassessment proceeding. There should be suspicion, a valid suspicion. There should be reasonable evidence that the money is belonged to the particular person, whose reopening is being done. In the impugned case, it becomes clear that the assessee himself has admitted that the money is belonged to him. The assessee admits that this is undisclosed income. The assessee's son has admitted that the money belongs to the assessee. The bank manager admits that the amounts belonged to the assessee and the amounts have been deposited during the impugned assessment year. Obviously, only the assessee would know to which year the money is belonged which have been deposited during t....
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....e event of challenge to the reasons must be able to justify the same based on material available on record; 11. He must disclose in the reasons as to which fact or material was not disclosed by the assessee fully and truly necessary for assessment of that assessment year, so as to establish the vital link between the reasons and evidence; 12. That vital link is the safeguard against arbitrary reopening of the concluded assessment. 9. With regard to point No.1, when this text is applied to the reasons recorded, it is seen that there is no defect in the reasons recorded. With regard to Point No.2, the AO has not done any substitution on addition. With regard to point No.3, no addition has been made. With regard to point N....