TMI Blog2018 (11) TMI 1599X X X X Extracts X X X X X X X X Extracts X X X X ..... the income of the assessee has escaped assessment. See BIR BAHADUR SINGH SIJWALI VERSUS INCOME TAX OFFICER WARD 1, HALDWANI [2015 (2) TMI 60 - ITAT DELHI] AO has not applied his mind to reach to the conclusion that the income of the assessee has escaped assessment. The AO initiated proceedings u/s 147 of the Act merely on the basis of AIR which in our considered view is not sufficient material for initiating the proceedings under section 147 of the Act. - decided in favour of assessee. - I.T.A. No. 2380/AHD/2016 - - - Dated:- 1-11-2018 - SHRI WASEEM AHMED, ACCOUNTANT MEMBER And SMT MADHUMITA ROY, JUDICIAL MEMBER For the Appellant : Shri M.S. Chhajed, A.R. For the Respondent : Shri Shiv Sewak, Sr. D.R. ORDER PER W ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oduce and receipts thereof and copies of Fixed deposits made by joint account holders out of their cash deposit in the bank. 2.2 That in the facts and circumstances of the case as well as in law, the Ld.CIT(A) ought not to have upheld the addition of ₹ 12,32,500/- as unexplained deposits in undisclosed bank account. 3.1 The observations made and conclusion reached by both the lower authorities so as to held that cash deposits in Bank Account is unexplained deposits in undisclosed bank account is not admitted by the appellant in so far as the same were contrary to the facts of the case and evidence on record or prejudicial to the appellant. 3. The assessee vides application dated 23.08.2018 has also raised additional grounds ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... us submitted that the reopening u/s 147 of the Act can be made only when the AO has information in his possession giving rise to the reason to believe that the income of the assessee has escaped assessment. In the instant case, the AO without forming any prima facie belief for escapement of income has initiated proceedings u/s 147 of the Act which is contrary to the provision of law. The Ld. AR further submitted that the AIR information does not lead to form a belief that the income of the assessee has escaped assessment. Accordingly, the Ld. AR submitted that the assessment proceedings framed u/s 147 of the Act are not sustainable. 8. On the other hand, Ld. DR submitted that the assessee has not filed any return of income u/s 139 of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e reasons recorded for reopening the assessment do not make out a case that the assessee was engaged in some business and the income from such a business has not been returned by the assessee. It is not open to deal with the question as to whether the assessee could be said to be engaged in any business; all that is to be examined is whether the fact of the deposits, per se, in the bank account of the assessee could be basis for holding the view that the income has escaped assessment. The answer is in negative. The Assessing Officer has opined that an income of ₹ 10,24,100 has escaped assessment of income because the assessee has ₹ 10,24,100 in his bank account but then such an opinion proceeds on the fallacious assumption that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... filed by him for the year. Till date the assessee has not replied nor responded. Since no return of income for the year under consideration i.e. A.Y. 2010-11 is filed by the assessee. I have therefore reason to believe that income chargeable to tax has escaped assessment for the year under consideration, i.e. A.Y. 2010- 11. The cash deposited made by the assessee in his Bank account has escaped assessment as the nature and source or the deposited made have not he explained by the assessee. The provision of section 147, Explanation 2(a) are squarely applicable to the facts of the case. Issue notice U/s. 148 of the IT. Act. 10.4 on perusal of the above reasons we note that it does not lead to draw an inference that the income of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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