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2024 (1) TMI 1260 - AT - Income TaxReopening of assessment u/s 147 - reasons to believe - Addition towards cash deposits in saving bank account and unexplained investment in purchase of land - CIT(A) upheld the addition made by the AO towards unexplained investment in property and granted partial relief on account of cash deposit made in the saving bank account HELD THAT:- AO had formed a reasonable belief that income of the assessee had escaped assessment primarily on two facts as assessee‟s case is non-PAN case but the assessee is having PAN and is regularly assessed to income tax. Assessee had used the very same PAN for filing his original return u/s 139. Also the income tax return for AY 2009-10 is not available on record but this is factually incorrect as assessee had already filed his income tax return on 22.09.2010 Based on the aforesaid two factual incorrect assumptions made by the ld AO while recording the reasons, the AO had come to conclusion that cash depositnmade in the saving bank account would constitute income escaping assessment in the hands of the assessee, warranting reopening u/s 147 of the Act. Once, it is clearly established that the very basis of assumption of jurisdiction by the ld AO for reopening the assessment was based on incorrect facts, the entire foundation of reason to believe of the ld AO goes. Once, the foundation goes, the entire reopening deserves to be quashed. This view of ours is further fortified by the decision of the coordinate bench of Mumbai Tribunal in the case of ITO Vs. M/s. Champaklal Mathurbai Mehta [2022 (11) TMI 1209 - ITAT MUMBAI] wherein by placing reliance on the decision of Deepak Wadhwa [2021 (3) TMI 332 - DELHI HIGH COURT]. and decision of Mumtaz Haji Mohamad Menon [2018 (10) TMI 366 - GUJARAT HIGH COURT] had quashed the reopening proceedings. Respectfully following the same, we have no hesitation to quash the reassessment by holding that assumption of jurisdiction u/s 147 of the Act in the instant case is based on incorrect facts recorded thereon. - Decided in favour of assessee.
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