Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2022 (2) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (2) TMI 1360 - HC - Income TaxValidity of reopening of assessment - deposits of cash during demonetization period - fresh material in the possession to form the belief that the deposited cash was in the nature of undisclosed income or not? - as argued deposit of cash during the demonetization period had been disclosed in the return itself - HELD THAT:- In the present case, the reassessment notice had been issued within four years of filing of the assessment and there had been no scrutiny assessment of the petitioner. The only requirement for reopening of assessment would be ‘reason to believe’. Courts cannot enter into the merits of the subjective satisfaction of the AO or judge the sufficiency of the reasons recorded and/or determined whether such opinion is based on tangible, concrete and new information that is capable of supporting such a conclusion. [See: Raymond Woolen Mills Ltd. vs. ITO [1997 (12) TMI 12 - SUPREME COURT] The petitioner herein had admittedly deposited in cash in his bank account. Though the said entry is reflected in the return of income, yet no supporting evidences are available to prove the source of deposit. This Court is of the view that in the present case there is reason to believe that income otherwise chargeable to tax has escaped the assessment. Submission that the appropriate authority had not granted sanction had not been raised by the petitioner in its objection petition and consequently, the same has not been dealt with by the Revenue while deciding the petitioner’s objections. Accordingly, in the event, the petitioner wishes to raise the issue of lack of sanction by the appropriate authority, the petitioner shall be at liberty to do so during the reassessment proceedings.
|