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2013 (7) TMI 10 - AT - Income TaxIncome from undisclosed sources - CIT(A) deleted the addition - whether CIT(A)-VIII erred in law in deciding the appeal in favour of the assessee without giving opportunity to AO as per provision of Rule 46A of the I.T.Rule, 1962 - reopening of assessment as that there was deposits in cash as well as cheque in the bank account maintained by the assessee with ABN AMRO bank with assessee having only interest income which was much less than the amount of deposit - Held that:- In the instant case the income which was added in the re- assessment was not on the basis of any subsequent information received by the AO but was only for the reason that the assessee could not prove sale transaction of unquoted equity shares already recorded in the books of account. In the recorded reasons the AO formed belief about escapement of income on the ground that there was deposit in AMB AMRO bank of the assessee by cash as well as by cheque and there was increase in cash balance as at the end of the relevant years in compare to the opening cash of those years and as in the opinion of the AO the assessee has not sold any shares during the year under consideration and therefore he believed that income chargeable to tax has escaped assessment. It was not the case of the Revenue that bank account with ABN AMRO bank of the assessee was not a disclosed bank account recorded in the regular books of account maintained by the assessee. Further in the impugned years the AO admitted that the assessee has shown sale of shares in both the years and therefore the contrary facts observed in the recorded reasons were erroneous. Thus the belief about the escapement of income was formed on the basis of an erroneous assumption of facts and therefore reopening of assessment was not valid. In favour of assessee.
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