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2019 (3) TMI 1932 - ITAT JAIPURValidity of reopening of assessment - reasons recorded by the AO based on incorrect fact - mistake in the reasons recorded - HELD THAT:- In the case in hand, the AO himself as admitted the mistake in the reasons recorded and we find that it is not only mistake in the reasons recorded but the AO has also made the addition while passing the impugned assessment order on account of credit card bills U/s 69C . Subsequent explanation of the AO that this amount represents the cash deposit in the bank account will not remove the defects in the reasons recorded. Assessing Officer in the reasons recorded for reopening of the assessment was proposed to assess the income on account of unexplained expenditure incurred by the assessee which was also assessed to tax at the time of passing the reassessment order. Subsequently, the AO has come out with the explanation in the remand report that the amount represents the income on account of cash deposited in the bank account therefore, it is re-categorization of transaction from unexplained expenditure to cash deposit in the bank account CIT(A) has stated that in the notice issued U/s 142(1) of the I.T. Act the AO has mentioned the cash deposit in the bank account however, the AO finally made the addition on account of payment of credit card bills then the notices issued U/s 142(1) itself was not considered by the AO while making the addition. Even otherwise the notice issued U/s 142(1) would not substitute the reasons recorded by the AO. Accordingly,the amount which was proposed to assess the income by the AO in the reasons recorded is not actually represents the payment of credit card bills then, reopening based on the incorrect facts and non application of mind is not sustainable in law. - Decided in favour of assessee.
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