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2019 (7) TMI 1779 - AT - Income TaxReopening of the assessment under section 147/148 - addition on account of unexplained deposit in bank account and addition on account of unexplained other deposits - Reopening based on AIR information assessee made cash deposit in his S.B. Account - HELD THAT:- Since the assessee did not respond to the query letter of the A.O, A.O. presumed that there is escapement of income. It is an admitted fact that no return of income was filed for the assessment year under appeal and at the time of issue of query letter by the A.O. no proceedings were pending before A.O, therefore, there was no justification for the A.O. to issue query letter to the assessee asking the explanation of assessee. Since query letter was illegal, therefore, assessee was not bound to reply to the same. Cash deposit per se would not be income of the assessee. An identical issue have been decided in the case of SHRI MAHAVIR PARSAD VERSUS THE I.T.O, REWARI [2017 (10) TMI 1377 - ITAT DELHI] Thus, the A.O. in the absence of reply from the side of the assessee which assessee was not bound to reply, merely presumed that there is escapement of income. There is, thus, no application of mind on the part of the A.O. to record reasons as per Law. The initiation of re-assessment proceedings are beyond the jurisdiction of the A.O. into the matter. We, therefore, do not subscribe to the view of the Ld. D.R. that reopening of the assessment is valid into the matter - Decided in favour of assessee.
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