TMI Blog2018 (2) TMI 1471X X X X Extracts X X X X X X X X Extracts X X X X ..... that the assessee’s accounts are duly audited and such audited accounts are presented alongwith the return. This has been so asserted in the objections before the Assessing Officer as well as in the petition before us. Both times, the response of AO in the order disposing of the objections and the affidavit-in-reply filed in this petition is that the assessee’s cash deposits can only be verified through assessment proceedings. AO does not even contended that the said cash deposits were not duly reflected in the return filed, but that he wishes to verify the validity of such deposits and the assessee’s claim of exemption, being a Trust. Re-assessment, even in a case where the return was not scrutinized before acceptance originally, cannot be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ice records that assessee trust failed to disclose true and correct financial statement of its income for A.Y. 2010-11 and also not offered any income for tax purpose. Thus I have reasons to believe that cash deposited in bank by the trust, ought to have been brought to tax has escaped the assessment within the meaning of section 147 of the I.T. Act. Therefore, I propose to assess/reassess the income of the assessee trust for A.Y.2010-11 as per the provisions of section 147 of the Income tax Act, subject to the provisions of Section 148 to 153 of the Income Tax Act, 1961. The petitioner raised objections to the notice of reopening under a communication dated 25th July 2017. In such objections, the assessee pointed out that the Trust f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g the notice was thus factually incorrect. It is now not disputed by the Revenue that the assessee did file return of income for the year under consideration which was duly acknowledged by the Department. The entire reasoning thus proceeded on the wrong premise that the assessee had never filed the return. This itself would be sufficient to annul the notice of reopening the assessment. Counsel for the Revenue however contended that in such return, the assessee had not disclosed the income of ₹ 33.97 lacs which the assessee-trust received in cash and deposited in a bank account. This assertion also is not borne out from the record. The assessee had from the outset been contending that the assessee s accounts are duly audited and suc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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