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2019 (8) TMI 1315 - AT - Income TaxValidity of notice u/s 148 - Addition u/s 68 - effect of not raising objection in respect of reopening before AO - non compliance of letter issued prior to issuance of notice u/s 148 - HELD THAT:- The proprietary of notice under section 148, based upon reasons recorded is not dependent upon the objection or no objection by the assessee at the stage of assessment. If the reasons recorded, independently can withstand the test of judicial scrutiny, only such reasons will confer jurisdiction to issue notice and frame assessment in pursuance thereto. However, if the reasons recorded, upon being challenged at any stage of proceedings fails to withstand the test of judicial scrutiny, in that eventuality, upon such recorded reason no valid notice can be issued and any assessment framed consequent thereto even taking shelter of ‘No objection’ from the assessee could save the assessment from being held to be declared void-ab-intio. The objection raised by the learned Sr. D.R is rejected being devoid of substance and based on incorrect reading of the law. The objection of the A.R that Letters dated 26.04.2011 and 03.09.2015 were not authorized under any provision of the Act remained undisputed. It also remained undisputed that no query, of the nature alleged in the reasons recorded was given to the assessee after he furnished replies on two occasions before two different AO, dated 20.05.2011 and dated 02.02.2016 in compliance to above Letters explaining that source of cash deposits was sourced from sale of agriculture produce held and possessed by his Father and in evidence thereof proof of ownership of agriculture land was also filed. It is an undisputed position that escapement is assumed for the alleged failure to prove the source of cash deposit as called upon vide Letters dated 26.04.2011 & 03.09.2015. Now, the question that arises for our determination is that whether escapement of income can be presumed on the basis of non-compliance or lack of compliance or even no compliance of the above Letters. We are of the considered opinion that the reasons recorded by the Assessing officer, are no reasons in the eye of law for assuming jurisdiction in this case.
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