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2023 (11) TMI 38 - HC - Income TaxReopening of assessment u/s 147 - reason to believe - assessee had deposited large cash amounts and entered into high value financial transactions - HELD THAT:- What is evident from the annexures produced together with the petition is that pursuant to summons issued to the petitioner u/s 131(1A) asking the petitioner to show how he has deposited large amount of cash in the account of the Ahmedabad Mercantile Co-operative bank, the petitioner had responded as submitting the explanation indicating that the amount was deposited in the bank account and it was pertaining to daily cash as well as of petrol, diesel deposited every day in the bank. A statement of reconciliation containing details of cash deposits and cash for the period from 09.11.2016 to 31.12.2016 was placed on record. The audited accounts are also produced along with the petition indicating that there was fresh and plausible explanation tendered by the petitioner in context of these cash deposit. Assessment order passed after due inquiry on 17.12.2019 also indicates that there was full and complete disclosure of income at the hands of the assessee. Apparently reasons supplied by the respondent in its communication and the order disposing the objections are without jurisdiction for the reason that it is the case of change of opinion on the part of the respondent with regard to the source of cash deposits made in the banks. It is well settled in the case of Kelvinator of India [2010 (1) TMI 11 - SUPREME COURT] that reason must have a link with the formation of the belief. Decided in favour of assessee.
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