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2021 (2) TMI 934 - AT - Income TaxReopening of assessment u/s 147 - Addition u/s 69A - assessee failed to explain the source of the cash deposits in the bank account - HELD THAT:- Assessee explained to AO before recording the reasons of reopening of the assessment that total cash deposited in his two bank accounts out of the sale proceeds of Popular Trees. Still AO has mentioned incorrect amount in the reasons. Ultimately AO accepted that the figure of ₹ 17,69,000/- mentioned in the reason is incorrect because he made addition of ₹ 18,78,400/-in the reassessment order. The assessee also explained that he has several source of income and sale proceeds of Popular Trees were deposited in cash in bank account. Thus, the cash deposit per se may not be income of the assessee. Thus, it is clear that AO has not verified information so recorded. AO in the reasons also mentioned another incorrect fact that he has reasons to believe that income assessed u/s 143(1) has escaped assessment because income assessed u/s 143(1) was at ₹ 1,79,300/- only. AO never mentioned in reasons u/s 148 that he has reasons to believe that income of ₹ 17,69,000/- chargeable to tax had escaped assessment. The reasons are therefore, incorrect and based on no belief of AO. The ingredients of section 147 of IT Act are, therefore, not satisfied. The AO did not apply mind to information. The issue is, therefore, covered by order of ITAT Delhi Bench in the case of Dheeraj Yadav [2021 (1) TMI 731 - ITAT DELHI]. Following the same, we set aside the orders of the authorities below and quash the reopening of the assessment. Resultantly, all additions stand deleted. - Decided in favour of assessee.
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