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2023 (5) TMI 915 - HC - Income TaxValidity of Reopening of assessment - AO observed cash withdrawals reported in STR appeared to be non-genuine and hence issued the notice on the ground that the income has escaped assessment for not having taxed as per the provision of the I.T.Act - HELD THAT:- We could noticed that the regular assessment has been already carried out, certain queries were raised by the AO. Scrutiny assessment had taken place under Section 143(3) which eventually resulted into Assessing Officer passing an order. After the same was over, at the behest of the DDIT investigation on the issue of the cash withdrawal, the objections raised against the issuance of notice for reassessment for the very year had been challenged. AO while disposing of the same as noted the aspect of scrutiny assessment and also dropping of the proceedings for the A.Y.2013- 14 and 2014-15 on the ground that the aspect of cash withdrawal was not at any point of time examining by Assessing Officer, though the books of account and other material had been placed, has continued the proceedings and issued the notice u/s. 148 of the I.T.Act. Since there was a scope of AO for the scrutiny assessment at the time of scrutiny assessment, which is still in the grey area as to whether the aspect of cash withdrawal, he could not be noticed because of want of required material available to that but, to despite the scrutiny assessment which had undertaken. We are of the opinion that the re-assessment shall continue. However, by way of interim relief, the opportunity to be given to the petitioner for producing before the officer concerned all the requisite material. Let the final assessment order will not be passed without permission of this Court. The petitioner shall continue to co-operate. None of the findings and observations shall prejudice the rights of the parties before the Assessing Officer.
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