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2016 (9) TMI 1285 - AT - Income TaxValidity of reopening of assessment - unexplained deposits - Held that:- In this case, two separate reasons have been recorded for reopening. This itself shows non-application of mind. Thus, have to necessarily conclude that the reasons were recorded without application of mind. Therefore, on this ground itself, the reopening of assessment has to be held bad in law by following the judgements of the jurisdictional High Court in the case Signature Hotels Pvt. Ltd. vs. ITO (2011 (7) TMI 361 - Delhi High Court ) wherein it was held that notice issued based on a report from Investigation Wing is invalid where the AO does not examine the evidence. The order of the Delhi Bench of the Tribunal in the case Bir Bahadur Singh Sijwali vs. ITO (2015 (2) TMI 60 - ITAT DELHI) refer to the proposition that mere deposit in bank cannot lead to the conclusion, or even inference, that income has escaped assessment. - Decided in favour of assessee.
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