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2021 (4) TMI 904 - ITAT JAIPURNP Estimation - CIT(A) has held that the AO treated the entire deposit in bank account of assessee as sale of assessee and estimated net profit by applying net profit rate of 5% - HELD THAT:- On perusal of facts, it is seen that the credit is in the bank account of the assessee and it is the onus of assessee to prove correct nature of the credits. She has not given any evidence to prove that this is not the turnover. The affidavit filed by her is not supported by any evidence and is self-serving. So far as net profit rate of 5% is concerned, the same is reasonable. The assessee did not furnish any comparative cases where the net profit rate is lesser than 5%. The case laws relied upon the ld. AR are not applicable on the facts of the present case, therefore, we do not find any reason to interfere into or deviate from the findings so recorded by the ld. CIT(A) and we uphold the same qua the issue under consideration. Reopening of the assessment u/s 147/148 as proper sanction U/s 151 was not obtained before issuing notice - HELD THAT:- The case of the assessee was reopened in the light of information/documents to the extent which were available with the AO. The material before the Assessing Officer was relevant and affords a live link or nexus to the formation of the prima facie belief that income chargeable to tax has escaped assessment in the hands of the assessee. The sufficiency and correctness of material need not be looked at the initial stage at the time of reopening of the case. While considering whether commencement of reassessment proceedings was valid, the court has only to see whether there was prima facie some material on the basis of which the department could reopen the case. The sufficiency or correctness of the material is not anything to be considered at that stage. The "reason to believe" would mean cause or justification. If the Assessing Officer has cause or justification to know or suppose that income had escaped assessment, he can be said to have reason to believe that an income had escaped assessment. The expression cannot be read to mean that the Assessing Officer should have finally ascertained the fact by legal evidence or conclusion and what is required is "reason to believe", but not the established fact of escapement of income. At the stage of issue of notice, the only question is whether there was relevant material on which a reasonable person could have formed a requisite belief. Appeal of the assessee is dismissed.
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