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2016 (7) TMI 67 - HC - Income TaxReopening of assessment - series of deposits in the accounts unexplained - Held that:- Reopening of an assessment cannot be resorted to for roving or fishing inquiry. The Assessing Officer must have some tangible material at his command to form a belief that income chargeable to tax has escaped assessment. In the present case, this requirement was not satisfied. The Assessing Officer made no effort to find out the assessee and to serve him at his permanent address given to the department which was also mentioned in his PAN card. Thus, the reasons were based on mere suspicion and unverified details. Reopening may not be permitted for mere verification purpose. If full and sincere efforts were made to trace the assessee by issuing notice for production of materials either in terms of powers under subsection (1) of section 131 or 133 of the Act, but such efforts failed for nonavailability or nonappearance of the assessee, a different situation may arise. However, on mere dropping of a letter at the address given in the bank account without any further effort to trace the assessee at his permanent address declaration by the Revenue authorities would not be sufficient to enable the Assessing Officer to jump to the conclusion that such entries remained unexplained and that therefore, there was valid reason to believe that income chargeable to tax has escaped assessment. The element of failure on part of the assessee to disclose truly and fully all material facts would also depend substantially on this very aspect. - Decided in favour of assessee
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