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2023 (9) TMI 94 - AT - Income TaxReopening of assessment u/s 147 - unexplained cash deposits in the bank a/c - assessee filed his return of income u/s 139(4) and the case was selected for limited scrutiny for verification of the cash deposits during the year - HELD THAT:- We find in the case of KLM Royal Dutch Airlines [2007 (1) TMI 138 - DELHI HIGH COURT] has held that once an inquiry has been initiated by the Assessing Officer, it cannot but result in either the return being accepted as having been correctly computed by the concerned assessee, or in an assessment being conducted and concluded thereon by the Assessing Officer. As in the case of Mohindra Mohan Sirkar [1977 (6) TMI 18 - CALCUTTA HIGH COURT] has quashed the re-assessment proceedings holding that it is the duty of the A.O to pass an assessment order and held where the Income Tax Officer acted on the returns filed by the assessee, issued notices u/s 143(2) and heard the assessee u/s 143(3), but, without completing the assessment, he took recourse to reopen the assessment under section 147 by issuing notices u/s 148, then, in that case, the Income Tax Officer acted without jurisdiction in issuing the notices. As in the case of Tarajan Tea Co (P) Ltd & Trustees of H.E.H. the Nizam Supplemental Family Trust [1999 (2) TMI 722 - SUPREME COURT] has held that AO cannot reopen the assessment on the same reasons which were before him at the time of the original proceedings. Since in the instant case the case of the assessee was selected for limited scrutiny to verify the cash deposit by issuance of notice u/s 143(2) and 142(1) and since the assessee has filed the requisite details, therefore, merely because no order was passed u/s 143(3), the Assessing Officer, in our opinion, cannot issue notice u/s 148 by reopening the assessment for escapement of the very same income which was the subject matter of scrutiny proceedings. We accordingly quash the re-assessment proceedings. Decided in favour of assessee.
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