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2015 (12) TMI 982 - HC - Income TaxReopening of assessment - undisclosed cash deposit - Held that:- When the bank account was not only disclosed by the petitioner at the outset along with return but was also noticed by the Assessing Officer during scrutiny, the main foundation of the allegation of the cash deposit having escaped to the notice of the Assessing Officer of the bank account not having been disclosed, stands falsified. The question of application of Explanation-1 to Section 147 of the of the Act would simply not arise. Even otherwise, it would appear that the petitioner gave full details of the bank account. During scrutiny assessment, if the Assessing Officer had any curiosity about the deposits made in such bank accounts, it was for him to question the assessee on such cash deposits. He simply cannot take shelter of Explanation-1 to Section 147 by contending that since such cash deposit was not pointedly brought to his notice by the petitioner, he can reopen the assessment beyond a period of four years alleging that the assessee did not disclose fully and truly all material facts. Coming to the second element of the reasons for reopening the assessment, the petitioner pointed out to the Assessing Officer in objections raised to the reopening of assessment that he never owned or operated any bank account in Kotak Mahindra Bank as alleged. He would presume that reference to cash deposit of ₹ 14,67,075/- was to the loan sanctioned and disbursed by the said bank for purchase of car. These objections, however, met with a total silence by the Assessing Officer in the order that he passed on 15.06.2015 disposing of such objections. If his stand was that the contention of the petitioner that he never had any such bank account in Kotak Mahindra Bank was false, it was his duty to state so, with atleast prima facie material to so establish.The disposal of the objections was thus done in a mechanical manner. Even today, the Department has not been able to bring on record anything to suggest that the petitioner's frontal assertion that he did not have any bank account in Kotak Mahindra Bank nor did he make any cash deposit in the said bank account as alleged, is false. In fact, the petitioner reconciled the said amount of ₹ 14,67,075/- by pointing out that this was exactly the same amount which the Kotak Mahindra Bank released by way of car loan, which was, in fact, paid over directly to the dealer. - Decided in favour of assessee
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