TMI Blog2018 (2) TMI 1580X X X X Extracts X X X X X X X X Extracts X X X X ..... ash deposits are made in the bank account of the assessee, but mere fact that these deposits have been made in bank account does not indicate that these deposits constitute an income which has escaped assessment. The reasons recorded for reopening assessment do not make out a case. AO on a standalone basis and on self-explanatory basis has not brought out any reasons for such reopening. When we are examining the deposits per se in the bank account of the assessee, could it be the basis of holding the view that income has escaped assessment? The reason to believe that income has escaped assessment is not established by the Assessing Officer. The ld. CIT(A) has not at all adjudicated upon the significance of the reasons recorded by the As ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ward 1(3), Bareilly. Being aggrieved by the aforesaid assessment order, assessee preferred an appeal before the ld. CIT(A) which was dismissed by order dated 19/12/2016, against which assessee has filed an appeal along with stay application before the ITAT Lucknow Bench on 25/1/2017 and 7/2/2017 respectively. The assessee also filed stay petition before the Revenue authorities i.e. Income Tax Officer, Ward 1(3), Bareilly on 25/1/2017. 3. In the Writ Petition, it was submitted by the assessee that recovery/attachment of bank account was pressed against the assessee during the pendency of the stay application and it was prayed that till disposal of the stay application, no coercive action against the assessee should be taken. The Hon'b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he entire- proceedings are without jurisdiction bad in law and be quashed. 04. Because mere deposits in bank account, without any material would not constitute reasons to believe, the reassessment proceedings are bad in law and be quashed. 7. The ld. A.R. of the assessee prayed that since the additional grounds taken by the assessee are purely legal in nature and go to the root of the matter, the same may be admitted. In this regard, the ld. A.R. of the assessee has also placed reliance upon the decision of the Hon'ble Supreme Court in the case of NTPC Ltd. vs. CIT, 229 ITR 383 and also the decision of the Hon'ble Gauhati High Court in the case of Assam Co. India Ltd., 256 ITR 423. 8. The ld. D.R. has objected to the admiss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ich has escaped assessment and without pointing out any defect, which is on the basis that certain amounts were deposited, the proceedings initiated under section 147/148 of the Act is unwarranted, illegal and beyond the spirit of law. The ld. A.R. of the assessee has also placed reliance upon the following judicial pronouncements:- (1) Bir Bahadur Singh Sijwali vs. ITO, ITA No.3814/DEL/2011, order dated 20/1/2015 (ITAT, Delhi). (2) Ashwani Kuamr vs. ITO, ITA No.129/Asr/2015, order dated 23/2/2016 (ITAT, Amritsar). (3) Gyan Prakash Motwani vs. DCIT, ITA No.692/LKW/2015, order dated 31/8/2016 (ITAT, Lucknow). (4) Parimisetti Seetharmamma vs. CIT, Hyderabad, order dated 21/4/1965 (SC) 12. The ld. D.R., on the other hand, relied ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Assessing Officer to disclose and open his mind through the reasons recorded by him. The reasons recorded should be self-explanatory and should not keep the assessee guessing for reasons. In the present case, the reasons recorded states that cash deposits are made in the bank account of the assessee, but mere fact that these deposits have been made in bank account does not indicate that these deposits constitute an income which has escaped assessment. The reasons recorded for reopening assessment do not make out a case. The Assessing Officer on a standalone basis and on self-explanatory basis has not brought out any reasons for such reopening. When we are examining the deposits per se in the bank account of the assessee, could it be the b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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