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2024 (1) TMI 259 - ITAT RAIPURValidity of the jurisdiction assumed by the A.O for initiating proceedings u/s. 147 - addition of cash deposit in his bank account, on a protective basis - HELD THAT:- Reopening is permissible only when the A.O gives a clear finding that ascertainable income has escaped in the hands of a definite assessee and find substance in the claim of the Ld. AR that recourse to proceedings u/s. 147 of the Act would not be permissible for framing of a protective assessment. As taking recourse to framing of a protective assessment in itself pre-supposes and has as its foundation, a probability, that on arising of a contingency in the future, say, order of an appellate authority/court would result into escapement of income in the hands of the assessee, the fundamental requirement for assuming of jurisdiction u/s 147 of the Act, i.e formation of a bonafide belief that the income of the assessee chargeable to tax had escaped assessment is found to be seriously amiss. Expectation that an income may arise in the hands of an assessee – i.e, based on a contingency in the future, can by no means justify assumption of jurisdiction u/s 147 of the Act. When the AO holding a bonafide belief that the income of another person, viz. Shri. Inder Lal Ramrakhyani had escaped assessment, and on the said basis had initiated proceedings u/s 147 of the Act on a substantive basis in the case of the said person, then, it is beyond comprehension that the AO after holding a belief that the amount was the income of another person, could have thereafter simultaneously held the said amount as the income of the assessee chargeable to tax that had escaped assessment - notice issued by the A.O u/s. 148 quashed for want of valid assumption of jurisdiction. Decided in favour of assessee.
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