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2023 (3) TMI 462 - AT - Income TaxReopening of assessment u/s 147 - Reason to believe - assessee has made high value transactions of cash deposits and issued DD/Cheque in lieu of cash through his bank accounts owned by him - assessee is an individual, engaged in Shroff business of discounting/issuing of negotiable instruments like drafts, cheques etc.- HELD THAT:- As seen from the detailed appellate order passed by the CIT(A), the mandate of Section 147 namely ‘reason to believe’ that income has escaped assessment is absent in the reasons recorded by the AO namely “high value cash deposited and issued cash/cheque in lieu of cash in his bank account”. Therefore the proceedings initiated by the AO by issuing 148 notice is unsustainable in law. We have no hesitation in confirming the detailed order passed by the ld. CIT(A) which is already reproduced at Para 3 of this order. Therefore we concur with CIT(A) that the notice issued u/s. 148 is invalid and bad in law. Unexplained cash deposited - Revenue could not able to establish it is an unexplained cash deposited by the assessee, inspite of enquiries made by Investigation Wing for more than 5 years. Similarly the AO failed to establish that the issuing of cheques to customers was fake or bogus and the assessee was receiving back the amount in cash. Thus the Assessing Officer failed to prove that the assessee is not in the business of “Sahukar/Shroff” as well as the cash deposited in the bank account neither remains with the assessee nor is it ploughed back in his business or in any kind of assets. Appeal filed by the Revenue is hereby dismissed.
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