Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2021 (7) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (7) TMI 706 - AT - Income TaxValidity of reopening of assessment - non-provide of opportunity and also illegality of the reopening of assessment. - HELD THAT:- It is settled position of law that the formation of belief for escapement of income should be based on correct and true information. However, admittedly incorrect figure transfer of cash deposit in the assessee’s account was mentioned in the information on the basis of which the Assessing Officer formed his belief of escapement of income - nothing is placed on record to suggest that the Ld. CIT by granting approval had examined the record and applied his mind as there is no justification regarding difference in the amount deposited in bank account and mentioned in the reason for reopening. When apparently there was a higher figure mentioned in the information supplied to the Assessing Officer. No material is available suggesting that bank had supplied wrong information to the Assessing Officer as the AIR information is not placed on record. Looking to the facts of the present case I am of the considered view that the reopening of assessment and approval thereof is not accordance with settled principle of law. Hence, the ground raised by the assessee is allowed. The reopening of the assessment is held to be bad in law on account of non-application of mind by the authorities below. Unexplained cash deposited in the bank account - gifts receipts - HELD THAT:- Assessing Officer drew his conclusion on the basis of the bank statement of the assessee and her father-in-law. It is correct that the assessee had deposited money at the different dates. This has caused suspicion, however, if the assessee had deposited in one go, the Assessing Officer would have not doubted. It is not the case where the donor was not a man of any means. Therefore, looking to totality of facts the action of the Assessing Officer cannot be upheld. Therefore, impugned addition is hereby deleted. - Decided in favour of assessee.
|