TMI Blog2019 (1) TMI 1893X X X X Extracts X X X X X X X X Extracts X X X X ..... ts in bank account. Reasons to believe - AO while issuing the notice u/s 148 of the Act has mentioned that the assessee had deposited a cash of ₹ 1,39,28,640/- during the financial year 2009-10 in the bank account which had escaped assessment. On the contrary, in the assessment order, he mentioned that the cash deposited in the bank account of the assessee was ₹ 51,24,064/-, which is evident from para 8.3 off the assessment order dated 14.12.2017. Therefore, the reasons recorded by the AO were not emerging from the record available with him. AO recorded the reasons which were not found to exists on the record, therefore, the reassessment framed deserves to be quashed. In view of the aforesaid discussion, we are of the co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... craves the leave to add, modify, amend or delete any of the grounds of appeal at the time of hearing and all the above grounds are wi thout prejudice to each other. 3. The main grievance of the assessee vide ground no. 2 relates to the jurisdiction of the AO in reopening the assessment u/s 147 r.w.s 148 of the Income Tax Act , 1961 (hereinafter referred to as the Act). 4. Facts of the case in brief are that the assessee e-filed the return of income on 08.08.2017 declaring an income of ₹ 49,320/-. The said return was fi led in response to the notice u/s 148 of the Act issued by the AO on 30.03.2017 on the basis of information wi th the department and by recoding the reasons as under: As per information avai lable on record ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nk account. 6. Now the assessee is in appeal. The ld. Counsel for the assessee submitted that in this case the proceedings u/s 147 of the Act were initiated by the ITO- 1(5), Ludhiana while the assessment has been framed by the ITO-1(5), Jalandhar who had not issued any notice u/s 148 r.w.s. 147 of the Act. Therefore, the assessment framed without issuing the notice u/s 148 r.w.s. 147 of the Act was bad in law. Reliance was placed on the decision of the ITAT Agra Bench in the case of Jawahar Lal Agarwal Vs ITO in ITA No. 336/Agra/2014 reported at (2017) 51 CCH 0421 (copy of the said order was furnished which is placed on record). It was further submitted that in the reasons recorded, the AO mentioned the figure of ₹ 1,39,28,640/- b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... amendment) Act 1987, w.e.f. 1.04.1988. The same enactment also introduced section 2(7A) in the Act. As per this section, 'Assessing Officer -means an Officer, as named therein, who is vested with the relevant jurisdiction. Thus, it was only the Officer having jurisdiction over the matter who, u/s. 147, could have formed any reason to believe escapement of income and none other. It has not been shown otherwise. To reiterate, in the present case, the ACIT-1 Agra, who recorded the reasons to believe escapement of income and issued the notice u/s 148 of the Act admittedly did not exercise jurisdiction over the matter. In fact, evidently, this was the reason why the matter was transferred from the ACIT-1, Agra to the ITO 4(2) Agra. Theref ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ary, in the assessment order, he mentioned that the cash deposited in the bank account of the assessee was ₹ 51,24,064/-, which is evident from para 8.3 off the assessment order dated 14.12.2017. Therefore, the reasons recorded by the AO were not emerging from the record available with him. 10. On a similar issue, the Hon ble Jurisdictional High Court in the case of CIT Vs Atlas Cycle Industries (supra) held as under: 9. Adverting to the question referred regarding the reassessment proceedings, we are of the view that the Tribunal was right in cancelling the reassessment as both the grounds on which reassessment notice was issued were not found to exist, and the moment such is the position, the ITO does not get the jurisdiction ..... X X X X Extracts X X X X X X X X Extracts X X X X
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