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2018 (12) TMI 907 - AT - Income TaxReopening of assessment - unexplained cash deposits in the savings bank account - reliance of AIR information - reasons to believe V/S reasons to suspect - Held that:- The reasons recorded did not make out a case that the assessee was engaged in some business and the income from such a business had not been returned by the assessee. In the case at hand also, the reasons recorded do not contain any such recital. The Tribunal held that the factum per se, of deposits in the bank account of the assessee could not be made the basis for holding the view that income had escaped assessment, over-looking that the sources of the deposits need not necessarily be the income of the assessee; and that as such, the reasons recorded were not sufficient to believe escapement of income rather, they were reasons to suspect escapement of income, which was not enough for issuance of a notice u/s 148. See BIR BAHADUR SINGH SIJWALI VERSUS ITO [2015 (2) TMI 60 - ITAT DELHI] Finding merit in the grievance raised by the assessee, the reasons recorded by the AO for issuance of notice u/s 148 of the Act are held to be invalid, being reasons not sufficient to form belief of escapement of income, based on vague information. All proceedings pursuant thereto, including notice issued under Section 148 of the I.T. Act, the assessment order and the impugned order are thus annulled and cancelled. No other issue survives for adjudication, nor was anything else argued. - Decided in favour of assessee.
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