TaxTMI 
TaxTMI 
2026 (10) TMI 599
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....nces of the case, and in law, the learned Commissioner of Income Tax (Appeals) [CIT(A)] erred in upholding the reassessment proceedings initiated under section 147 read with section 148 of the Income Tax Act, 1961, without appreciating the following facts: a) There were no independent, reliable, and tangible material facts or information on record to initiate the reassessment proceedings. b) All material facts necessary for the assessment were fully and truly disclosed by the Appellant in the Return of Income filed. c) Mere possession of information that was already available from the Return of Income cannot constitute a valid reason to form a belief for reopening the assessment. d) The mandatory jurisdic....
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....The copy of the summary of the Stock Register provided during assessment proceedings clearly reflects all inward purchases of goods and corresponding outward sales of goods, including all cash sales, which are duly accounted for on the outward side of the stock summary. e) Neither the Assessing Officer (AO) nor the CIT(A) raised any doubts regarding the genuineness of the purchases made during the year under consideration. f) The CIT(A) ignored settled judicial precedents and decided cases on cash counter sales, which hold that the assessee is not required to establish the identity or creditworthiness of customers, provided there are genuine and corresponding purchases and stock available against such cash sales. ....
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....012-13 declaring Nil income. The assessment under section 143(3) of the Income-tax Act, 1961 ("the Act") was completed on accepting the return of income. Subsequently, the Assessing Officer received information from the Investigation Wing regarding large cash deposits in different bank accounts of the assessee which was followed by transfer of the said amounts through banking channels. On the basis of this information, the Assessing Officer reopened the assessment under section 148 of the Act. In response, the assessee filed its return declaring Nil income. 3. During the reassessment proceedings, the assessee furnished details of its bank accounts and certain purchase and sale details along with sample invoices. The Assessing Officer, ho....
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....s information established tangible material for forming a prima facie belief that income chargeable to tax had escaped assessment. The learned CIT(A) further held that the Assessing Officer had applied his mind to the information received and the reassessment was not based merely on suspicion or change of opinion. Accordingly, Ld. CIT(A) dismissed the ground challenging the reopening of assessment. 7. On merits, the learned CIT(A) noted that the assessee submitted that the cash deposits of Rs.11,50,24,260/- were the assessee's genuine cash sales. However, the CIT(Appeals) observed that the assessee had not produced supporting evidence to establish the genuineness of such sales. The learned CIT(A) noted that the cash book contained self-g....
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....ecific information from the Investigation Wing regarding large cash deposits in the bank accounts of the assessee. The Assessing Officer thereafter examined the information and formed a belief that income had escaped assessment. Nothing has been brought before us to controvert these findings. We therefore find no reason to interfere with the order of the learned CIT(A) upholding the reopening of the assessment. 12. Coming to the addition of Rs.11,50,24,260/- under section 68 of the Act, the case of the assessee is that the cash deposited in the bank accounts was towards cash sales already recorded in its books and, therefore, addition of the same amount again would result in double taxation. However, the issue is not merely whether the a....