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2021 (4) TMI 376 - AT - Income TaxReopening of assessment u/s 147 - HELD THAT:- In the present case, the Pr. CIT has recorded his satisfaction by writing “yes, satisfied, it is a fit case for issue notice u/s 148” on the format. In our considered view, the satisfaction recorded in the present case is similar to the satisfaction recorded in the case discussed above. So far as, the application of mind by AO is concerned, the reasons recorded by AO for reopening of the case prima facie indicate that he has not applied his mind and proceeded on assumption that the bank deposit constitutes unexplained income of the assessee. As pointed out by the Ld. Counsel, the Delhi Bench of the ITAT in the case of Bir Bahadur Singh Sijwali vs. ITA [2015 (2) TMI 60 - ITAT DELHI] has set aside the action of AO in reopening the case of the assessee initiated on fallacious assumption that bank deposits constitute undisclosed income of the assessee, overlooking the fact that source of deposit need not necessarily be income of the assessee. We further notice that in the present case, the Ld. Pr. CIT has accorded sanction for issuing notice u/s 148 of the Act, without ensuring that the AO has recorded the reasons after due application of mind. In our considered view, the Ld. CIT(A) has sustained the addition in question ignoring that the impugned order suffers from the legal infirmities discussed in the forgoing paras. In the light of the facts of the case and the cases relied upon by the Ld. Counsel, we are of the opinion that the impugned order is not sustainable in law as the ld. CIT(A) has passed the impugned order ignoring the ratio laid down by the hon’ble High Court of Delhi and Madhya Pradesh and also the decision of the Delhi Bench of the Tribunal discussed above. We accordingly allow the legal grounds raised by the assessee and set aside the impugned order passed by the. ld. CIT(A).
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