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2018 (2) TMI 1580 - AT - Income TaxValidity of reopening of assessment - Non recording of reasons u/s 148 - notice issued without jurisdiction - cash deposits are made in the bank account of the assessee - Held that:- When no reasons are recorded for reopening the assessment prior to issuance of notice, the reassessment proceedings must fail for that reason alone. It is well settled in law that the reasons as recorded for reopening the assessment are to be examined on a standalone basis. Nothing can be added to the reasons so recorded, nor anything can be deleted from the reasons so recorded. In the present case, the reasons recorded states that cash deposits are made in the bank account of the assessee, but mere fact that these deposits have been made in bank account does not indicate that these deposits constitute an income which has escaped assessment. The reasons recorded for reopening assessment do not make out a case. AO on a standalone basis and on self-explanatory basis has not brought out any reasons for such reopening. When we are examining the deposits per se in the bank account of the assessee, could it be the basis of holding the view that income has escaped assessment? The reason to believe that income has escaped assessment is not established by the Assessing Officer. The ld. CIT(A) has not at all adjudicated upon the significance of the reasons recorded by the Assessing Officer before initiation of proceedings under section 147/148 of the Act in his order and summarily dismissed the appeal filed by the assessee. The factum per se of deposits in the bank account of the assessee could not be the basis for holding that the income chargeable to tax has escaped assessment overlooking that the source of deposits need not necessarily be income of the assessee and that such reasons recorded were not sufficient to believe escapement of income. - Decided in favour of assessee.
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