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2024 (11) TMI 1389 - HC - Income TaxReopening of assessment u/s 147 - cash deposits were made in the bank account of the petitioner - HELD THAT - The total value of the transactions which were suggestive of petitioner s income escaping assessment was quantified. The petitioner had responded to the impugned notice raising several issues. However we do not find that the said response contains any information either as to the quantum of cash deposited during the previous year relevant to the AY 2017-18. There was also no explanation as to why large amounts were received in cash. AO had passed the impugned order holding that the petitioner s response was found to be unsatisfactory. The entire purpose of issuing a notice u/s 148A (b) of the Act is to enable the Assessee to respond to the information available with the AO which may be suggestive of the Assessee s income escaping assessment. In the instant case where the allegation is that a large cash deposits were made in the bank account of the petitioner the least that was required for the petitioner was to inform the AO as to the correct quantum of the cash deposits in his bank account and his explanation for the same. This crucial information is not available in the petitioner s response to the impugned notice. It is relevant to note that at the threshold stage of issuing a notice under Section 148 of the Act the AO is not required to finally conclude whether any income has escaped assessment. The notice merely initiates the reassessment proceedings. Thus all rights and contentions of the petitioner to contest the quantum as well as the taxability of the amounts as reflected in the impugned notice and the impugned order are reserved. We are unable to accept that any interference by this court is warranted in proceedings under Article 226 of the Constitution of India.
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