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2018 (10) TMI 123 - AT - Income TaxReopening of assessment - unexplained deposits - eligibility of reason to believe - tangible material - Held that:- There is no nexus between the prima-facie inference arrived in the reasons recorded and information; the information was restricted to cash deposits in bank account but there was no material much less tangible, credible, cogent and relevant material to form a reason to believe that cash deposits represented income of the assessee; that even the communication dated 24.1.2012 could not be made a basis to assume jurisdiction in view of the fact that such an enquiry letter is an illegal enquiry letter and thus cannot be relied upon; that the proceedings initiated are based on surmises, conjectures and suspicion. The same are without jurisdiction; that the reasons recorded are highly vague, far-fetched and cannot by any stretch of imagination lead to conclusion of escapement of income and these are merely presumption in nature; that it is a case of mechanical action on the part of the AO as there is non-application of mind much less independent application of mind so as to show that he formed an opinion based on any material that such deposits represented income. See KRISHAN KUMAR VERSUS ITO [2017 (12) TMI 1612 - ITAT NEW DELHI]- Decided in favour of assessee
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