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2023 (2) TMI 576 - AT - Income TaxReopening of assessment u/s 147 - cash deposit in bank - HELD THAT:- Cash deposits in the bank account alone could not lead to formation of the belief of escapement of income by the AO. It is settled law that for valid assumption of jurisdiction to reopen the case u/s 147 there has to be belief of the AO of escapement of income based on information with him. The information of cash deposit in bank can at the most lead to suspicion of income having escaped assessment, the deposits not necessarily being in the nature of income. This suspicion can lead to a belief only when further inquiry is conducted by the AO to determine the nature of cash deposits and based on the results of the inquiry, only a belief of escapementof income can be formed. Noting the fact that the actual cash deposits in the bank accounts of the assessee this amount of cash deposits, in no case, could have resulted in escapement of income at all, being well below taxable limit even if all the cash deposits were found to be in the nature of income not returned to tax by the assessee and the assessee as per facts noted by the AO had no other income, except that held by the AO in the present reassessment proceedings. Jurisdiction assumed in the present case by the AO to reopen the case of the assessee u/s 147 of the Act was without any formation of belief of escapement of which, based on incorrect facts and thus not in accordance with law. The assessment order, therefore, so framed is held to be invalid, and accordingly set aside. Appeal of the assessee is allowed.
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