TMI Blog2019 (7) TMI 1779X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee asking the explanation of assessee. Since query letter was illegal, therefore, assessee was not bound to reply to the same. Cash deposit per se would not be income of the assessee. An identical issue have been decided in the case of SHRI MAHAVIR PARSAD VERSUS THE I.T.O, REWARI [ 2017 (10) TMI 1377 - ITAT DELHI] Thus, the A.O. in the absence of reply from the side of the assessee which assessee was not bound to reply, merely presumed that there is escapement of income. There is, thus, no application of mind on the part of the A.O. to record reasons as per Law. The initiation of re-assessment proceedings are beyond the jurisdiction of the A.O. into the matter. We, therefore, do not subscribe to the view of the Ld. D.R. that reop ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 3. We have heard the Learned Representatives of both the parties. 4. Learned Counsel for the Assessee referred to PB-9 which is reasons for reopening of the assessment. The same reads as under: Reason for the brief that the income has escaped assess ment:- As per AIR information, the assessee has deposited cash amounting to ₹ 10,07,400/- in his saving bank account during the F.Y. 2011-12 relevant to the A.Y. 2012-13. On verification of the details in ITD, it is seen that the assessee has not filed his return of income for the A.Y. 2012-13. Therefore a query letter dated 03/02/2017 was issued to the assessee to furnish the copy of return of income filed for the A.Y. 2012-13. The same was duly served upon the assessee by S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .02.2017 could not have been issued to the assessee. It was, therefore, illegal and there is no application of mind by the A.O. Similar issue have been considered by the ITAT, Delhi SMC-Bench in the case of Mahavir Prasad vs. ITO in ITA. No. 924/Del./2015 for the A.Y. 2007-2008 in which reopening of the assessment have been quashed vide Order dated 09.10.2017. The relevant findings in para-9 of the Order is reproduced as under: 9. After going through the reasons recorded by the ITO, Ward-2, Rewari, I am of the view that there is no nexus between the prima facie inference arrived in the reasons recorded and information; the information was restricted to cash deposits in bank account but there was no material much less tangible, credible, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ettled Law that validity of the re-assessment proceedings is to be determined with reference to the reasons recorded by A.O. for reopening of the assessment. The reasons for reopening of the assessment are reproduced above in which the A.O. has mentioned that as per AIR information assessee made cash deposit of ₹ 10,07,400/- in his S.B. Account. A.O. has issued query letter dated 03.02.2017 asking the assessee to furnish copy of the return of income and explanation of cash deposit. Since the assessee did not respond to the query letter of the A.O, A.O. presumed that there is escapement of income. It is an admitted fact that no return of income was filed for the assessment year under appeal and at the time of issue of query letter by t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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