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2022 (5) TMI 242 - AT - Income TaxReopening of assessment u/s 147 - Unexplained bank deposits - HELD THAT:- From the reasons as recorded, it is noted about the escaped income for the assessment year under consideration, that the assessee had entered into ‘financial transactions,’ amounting to Rs. 1,41,94,000/- but as per the copy of the ‘bank statement’ obtained by the Assessing Officer by way of enquiries u/s 133(6), there were only deposits of Rs. 74,41,900/-, for which, he has made the addition. In our view the very formation of belief by the Assessing Officer is not valid. We have gone through the judgements, relied upon by the Ld. Counsel in the cases of ‘Sh. Gaurav Joshi’, ‘Smt. Monika Rani’, ‘Sh. Jaspal Singh’ and ‘M/s Kapoor Rice & Gen. Mills’ [2019 (1) TMI 1893 - ITAT AMRITSAR] - In all these cases, it has been held that where wrong facts have been recorded for formation of reason to believe, the assessment proceedings deserve to be quashed. Also relying on GURDISH KAUR KHULLAR case [2022 (3) TMI 122 - ITAT CHANDIGARH] there were wrong reasons recorded for the purposes of formation of belief for issuance of notice u/s 148 in the present case. It was merely on the basis of incorrect bank transaction in the form of bank deposits, the Assessing Officer has form reason to belief and thus He has wrongly assumed the jurisdiction and, therefore following the judgments as cited ‘supra’, the assessment as framed by issuance of notice u/s 148 for incorrect belief is deserves to be quashed. - Decided in favour of assessee.
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