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2019 (3) TMI 1242 - AT - Income TaxReopening of assessment u/s 148 - validity of the reopening proceedings - addition u/s 68 - non-filers of return - reopening based on AIR information - non-compliance before the AO and CIT(A) - admission of additional evidence - HELD THAT:- The assessee is not a tax payer and has made huge deposits in her bank account maintained with Syndicate Bank. The above information was received from the CIB Kanpur. The Assessing Officer had given due opportunity to the assessee to explain the source, but, there was no compliance for which the Assessing Officer, after recording the reasons and after obtaining due permission from the Pr. CIT, Meerut issued notice u/s 148. Under these circumstances, the reassessment proceedings initiated by the Assessing Officer cannot be held as invalid. If the plea of the assessee that in case of a non-filer of tax returns, assessments cannot be reopened on the basis of AIR information that assessee has made huge cash deposits in the bank account is accepted, then the provisions of section 147 and 148 in the statute will become redundant. Accordingly, the grounds relating to validity of reassessment proceedings are dismissed. Assessee admittedly did not appear before the Assessing Officer. However, before the CIT(A) the assessee explained the reasons for non-appearance which was due to death of the father of the counsel of the assessee. CIT(A) should have accepted the additional evidences filed before him showing that such deposits were out of sale of certain agricultural lands on different dates and could have obtained a remand report from the A.O. Since there was non-compliance before the Assessing Officer and ld.CIT(A) did not accept the additional evidences, therefore, considering the totality of the facts of the case and in the interest of justice, deem it proper to restore the issue to the file of the Assessing Officer with a direction to grant one final opportunity to the assessee to substantiate her case. - Appeal filed by the assessee is partly allowed for statistical purposes.
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