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2022 (12) TMI 1219 - ITAT PUNEInitiation of re-assessment proceedings - Reasons to believe - cash deposits unexplained in the bank and also withdrawals made therefrom - HELD THAT:- AO initiated re-assessment proceedings just to verify the transactions of deposits and withdrawals in/from the bank account. Section 147 of the Act, dealing with the reassessment, opens with the words “If any income chargeable to tax, in the case of an assessee, has escaped assessment for any assessment year, the Assessing Officer may, subject to the provisions of sections 148 to 153, assess or reassess such income ”. It is ostensible that the action u/s 147 can be taken when the AO has formed reasons to believe that some income chargeable to tax has escaped assessment. Ex consequenti, belief of the AO about any income escaping assessment is sine qua non for initiating re-assessment. No jurisdiction can be assumed for framing assessment u/s 147 of the Act absent such reasons to believe about the escapement of income. On going through the reasons, as reproduced above, it is palpable that the AO initiated re-assessment proceedings just to verify the deposits and withdrawals from the bank account of the assessee. There is no whisper in the reasons as to reason to doubt, much less the reason to believe, about the escapement of income. In view of the fact that the re-assessment has been initiated simply to verify the transactions in the assessee’s bank account, which does not fulfill the jurisdictional condition of belief about the escapement of any income, we are satisfied that action of the AO lacks validity. We, therefore, set aside the initiation of reassessment and the consequential order passed u/s 147. Assessee appeal is allowed.
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