TaxTMI 
TaxTMI 
2026 (4) TMI 1624
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....w and on facts in upholding the validity of notice issued under section 148 of the Income-tax Act, 1961 dated 26.03.2024, which is barred by limitation under section 149(1)(a) of the Act and therefore the entire reassessment proceedings are void ab initio and without jurisdiction. 2. BECAUSE, the Ld. CIT(A) failed to appreciate that for A.Y. 2017-18, the statutory limitation of three years expired on 31.03.2021, whereas the notice under section 148 of the Act was issued on 26.03.2024, much beyond the permissible time limit. 3. BECAUSE, the Ld. CIT(A) has grossly erred in holding that section 149(1)(b) is applicable merely on the basis of aggregate cash deposits and withdrawals, without there being any income escaping asses....
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....ntain books of account and therefore rejection of business activity is legally untenable. 9. BECAUSE, the provisions of section 115BBE of the Act cannot be invoked in view of the judgement of Hon'ble Madras High Court in the case of S.M.I.L.E. Microfinance Ltd. Vs. ACIT, 2024 (11) TMI 1444 Madras High Court as followed by the Hon'ble ITAT, Agra Bench in the case of Sh. Pankaj Kumar Vs. ITO in ITA No. 219/Agra/2023 dated 04.02.2025. 10. BECAUSE, the Ld. CIT(A) failed to adjudicate serious computational inconsistencies between the assessment order and computation sheet, rendering the demand illegal and unsustainable. 11. BECAUSE, order of the Ld. CIT(A) is bad in law, against facts, and liable to be quashed.....
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....rought to my notice column 7 of the approval wherein the Assessing Officer has got approval for escapement of income for an amount of Rs. 1,11,37,000/-. Further he brought to my notice page 168 of the paper book which is order passed u/s 148A (d) of the Act, wherein the Assessing Officer has determined the escapement of income after verification of bank statement submitted by the assessee to the extent of Rs. 66,13,961/- including Rs. 27,00,000/- of cash deposit made by the assessee during the year under consideration. Further, he brought to my notice assessment order passed u/s 147 r.w.s. 144B of the Act and he submitted that the Assessing Officer has finally made the addition of Rs. 27,00,000/- which related to cash deposits made by the a....
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....It was held that reopening becomes vaid ab initio if the actual escapement does not meet the statutory threshold and Delhi Bench in the case of Shri Malkian Singh vs. ITO (2025) (10 TMI 848, reopening was quashed where the actual escapement was much lower that what was assumed for invoking extended limitation. 5. On the other hand, Ld. DR brought to our notice at page 166 of the paper book, wherein the Assessing Officer has submitted annexure to the form of seeking approval u/s 151 of the Act, in the annexure, the Assessing Officer has clearly gave the explanation for escapement of income which includes the cash deposit of Rs. 27,00,000/- and aggregate gross amount debited to the open in cash in the bank statement to the extent of Rs. 84....
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....ns to believe. 7. Further, I observed that finally the Assessing Officer has assumed of escapement of income to the extent of cash deposit made by the assessee during the year to the extent of Rs. 27,00,000/- that being the case, the actual escapement of income is only Rs. 27,00,000/- as per provisions of section 149(1) of the Act, the Assessing Officer can reopen the assessment which is beyond 3 years from the end of the relevant assessment years unless the Assessing Officer has in his possession which reveals that income chargeable to tax in the form of assets or expenditure are in the nature or entries in the bogus account which has escaped amounts or is likely to amount of Rs. 50,00,000/- or more, that being the case the actual escap....