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2020 (3) TMI 1421 - ITAT DELHIReopening of assessment u/s 147 - eligible reason to believe v/s suspicion - on the basis of AIR information received by the AO that the assessee has deposited cash in the savings bank account, various verification letters were issued to the assessee to verify these transactions - HELD THAT:- AO reopened the case of the assessee merely on the basis of suspicion that the income of the assessee has escaped assessment. It is a settled that notice u/s 148 of the Act cannot be issued merely on the basis of the insufficient compliance to the letters issued by the department. There must be a something which indicates, even if it does not establish, the escapement of income from assessment. Merely because some further investigations have not been carried out, which, if made, could have led to detection of an income escaping assessment, cannot be reason enough to hold the view that the income has escaped assessment. Thus, in the present case also, the AO issued notice u/s 148 of the Act merely on the basis of suspicion that the cash deposited in the bank account of the assessee has escaped assessment. See BIR BAHADUR SINGH SIJWALI VERSUS INCOME TAX OFFICER WARD 1, HALDWANI [2015 (2) TMI 60 - ITAT DELHI] Thus reassessment proceedings initiated by the AO are bad in law and liable to be quashed. Decided in favour of assessee.
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