TMI Blog2016 (7) TMI 67X X X X Extracts X X X X X X X X Extracts X X X X ..... ification purpose. If full and sincere efforts were made to trace the assessee by issuing notice for production of materials either in terms of powers under subsection (1) of section 131 or 133 of the Act, but such efforts failed for nonavailability or nonappearance of the assessee, a different situation may arise. However, on mere dropping of a letter at the address given in the bank account without any further effort to trace the assessee at his permanent address declaration by the Revenue authorities would not be sufficient to enable the Assessing Officer to jump to the conclusion that such entries remained unexplained and that therefore, there was valid reason to believe that income chargeable to tax has escaped assessment. The element ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the case of M/s Sai Exports was issued to the DDIT(Inv), Unit 7(1), Mumbai on 03.12.2014 to verify the bank transactions made with the ING Vysya Bank, Nariman Point Branch, Mumbai in the CA No.500011022938 as the address mentioned in the bank statement was 320B, 3rd Floor, Amrit Diamond House, Tata Road No.1, Opera House, Mumbai. In response, the DDIT(Inv), Unit 7(1), Mumbai stated that the whereabouts of Shri Sampatraj Dharmichand Jain, Prop. Of M/s. Sai Exports could not be traced out hence, verification of the transactions appearing in bank statement whether reflected in the books of account or not, could not be done. 3. On perusal of the bank statement bearing CA No.500011022938 of the ING Vysya Bank, Mumbai, it is seen that for t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... address mentioned in the bank statement. It was however stated that whereabouts of the proprietor of the Sai Export i.e. the present petitioner could not be traced and therefore, verification of the transactions appearing in the bank statement whether they were reflecting in the books of accounts could not be done. The reasons further record that between 03.04.2007 to 06.12.2010, there were debit entries of ₹ 114.45 crores (rounded off). The transactions made in this account could not be examined due to the above noted reasons and therefore, the source of deposits in the accounts could not be explained by the assessee. 7. In this context, counsel for the petitioner submitted that the petitioner was a permanent resident of Surat. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e reopening an assessment which has been previously framed after scrutiny, what is essential is that the Assessing Officer must have reason to believe that income chargeable to tax has escaped assessment. When such notice has been issued beyond the period of four years from the end of relevant assessment year, additional requirement of failure on the part of the assessee to disclose truly and fully all material facts for such assessment would also apply. In this context, the reasons recorded by the Assessing Officer, merely refer to a bank account maintained by the assessee from which, during a period of about two and a half years, which included the period relevant to assessment in question, there were debit and credit entries in excess to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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