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2018 (11) TMI 1953 - AT - Income TaxValidity of reopening of assessment - it was the AIR information, which formed the basis of the AO’s belief of escapement of income of the assessee - unexplained cash deposits in the savings bank account of the assessee - HELD THAT:- In ‘Bir Bahadur Singh Sijwali case [2015 (2) TMI 60 - ITAT DELHI] like in the present case, the reasons recorded indicated that cash deposits had been made in the bank account of the assessee. The Tribunal held that the mere factum of deposits having been made in a bank account does not indicate that these deposits constitute an income which has escaped assessment. As observed that the reasons recorded did not make out a case that the assessee was engaged in some business and the income from such a business had not been returned by the assessee. In the case at hand also, the reasons recorded do not contain any such recital. The Tribunal held that the factum per se, of deposits in the bank account of the assessee could not be made the basis for holding the view that income had escaped assessment, overlooking that the sources of the deposits need not necessarily be the income of the assessee; and that as such, the reasons recorded were not sufficient to believe escapement of income; that rather, they were reasons to suspect escapement of income, which was not enough for issuance of a notice u/s 148 of the Act. The reasons recorded by the AO for issuance of notice u/s 148 of the Act are held to be invalid, being reasons not sufficient to form belief of escapement of income, based on vague information. All proceedings pursuant thereto are thus annulled and cancelled. Assessee appeal allowed.
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