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2022 (3) TMI 122 - AT - Income TaxValidity of reopening the assessment u/s 147 r.w.s 148 - scope of borrowed satisfaction - non independent application of mind -Addition u/s 69 on account of cash deposits in bank account - assessee an NRI is residing in Surrey, Canada - Information available with the department cash was deposited in the bank account of the assessee and the assessee had not filed the return of income - HELD THAT:- A.O. without applying his mind proceeded on assumption that the total bank deposit of the assessee constitutes unexplained income of the assessee and overlooked this fact that source of deposit need not necessarily be the income of the assessee. See SH. AMRIK SINGH, S/O SH. SURINDER SINGH [2016 (5) TMI 768 - ITAT AMRITSAR] A.O. in the reasons recorded clearly stated that on the basis of information that the assessee deposited cash in the bank account formed the opinion that the said deposit was the income of the assessee which escaped the assessment, while doing so he did not apply his own mind and initiated the reassessment proceedings. Thus the A.O. acted only on the basis of suspicion, so it cannot be said that it was based on belief that the income chargeable to tax had escaped assessment - Thus reassessment proceedings, initiated by the A.O. on the basis of suspicion were not valid - Decided in favour of assessee.
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