2024 (5) TMI 1711

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....cts. 2. That the Ld. AO erred in recording the reasons for re-opening of assessment without application of mind. 2.1 That the Ld. CIT(A) has erred in law and on facts by ignoring the fact that cash deposits to which such Increase in the capital account has accrued have already been accounted for in the books of accounts and duly offered for tax. 3. That the Ld. CIT(A) has erred in law and on facts by confirming the addition of Rs. 23,24,000/- made by the Ld. AO vide assessment order dated 12.12.2018 on account of alleged unexplained income u/s 69 of the Income Tax. 4. That the Ld. CIT(A) has erred in law and on facts in not considering the return of income in the light of a submission of the appellant. ....

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.... the appeal on merits. 4. During the course of hearing before us, the ld. Counsel for the Assessee raised the issue of reopening of assessment u/s 148 and he challenged it on the ground that the assessment was reopened without making any verification and application of mind by the Assessing Officer as it is evident from the wrong amount / figure mentioned in the grounds for taking action u/s 148 of the Act. In the very assessment order, the Assessing Officer has mentioned the reasons for taking action u/s 148 of the Act as under:- "3. On verification from the ITS, it is seen that the assessee has made cash deposit of Rs. 43,99,000/- with ICICI Bank Ltd during FY 2010-11 relevant to AY 2011-12" 5. Notice u/s 148 for re-opening....

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....;ble Chandigarh ITAT Bench in case of JMD Astrological Consultancy Services Pvt Ltd, ITA 849/CHD/2011, Baba Kartar Singh Dukki Educational Trust, ITA 444/CHD/2014, Monika Rani, ITA 582/CHD/2019, quashed the reassessment proceedings when the reopening was found to be done on basis of non-existent and factually incorrect reasons and it was held that AO did not apply his mind before recording the reasons. ● Hon'ble Delhi ITAT Bench in entirely identical case in Late Ganpat Singh ITA 2880/DEL/2019 where in reasons cash deposits was mentioned as Rs. 36.98 lakhs however actual deposits found to be Rs. 16.98 lakhs in assessment order. Hon'ble bench held that reasons were recorded without application of mind and the same made....