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2018 (9) TMI 1466 - AT - Income TaxReopening of assessment - unexplained cash deposits - AO has objected the affidavit of the assessee whereby the explanation of cash deposit in his bank account has been said to be an afterthought - Held that:- It reveals from the records that the reasons recorded for reopening clearly speaks about the cash deposits in the savings bank of the assessee during the FY 2005-06. Assessee has not filed return of income for the AY 2006-07 relevant to FY 2005-06. The reasons recorded by the AO shows prima-facie, which is sufficient for reopening of assessment in terms of provisions of section 147 invoking the provisions of section 148 an escapement of income by the assessee within the meaning of section 147 - Unable to appreciate the submissions made by the assessee on the issue of the reopening of assessment. No irregularities or error is found in the observation made by the Ld.CIT(A) while justifying reopening of assessment which calls for interference by us. As perused the affidavits on records we find those parties were not examined. It is an admitted fact that no enquiry whatsoever has been conducted by the Ld.AO even at the remand stage on the affidavit filed by the parties. When those two additional evidences are really germane to the issue involved in the matter and needed to be considered before making addition, the Ld.CIT(A) without taking into consideration of the conduct of the AO in ignoring to conduct enquiry on those affidavits, confirmed the addition in a routine manner. We, therefore, in the larger interest of justice find it proper to refer this issue to the file of Ld.AO to make an enquiry on this affidavits and also to examine the depositors of those affidavits. We therefore set aside the order passed by the authorities below and further direct the AO to consider the issue afresh - Assessee’s appeal is allowed for statistical purposes.
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