9911796707
TMI Blog2021 (7) TMI 706X X X X Extracts X X X X X X X X Extracts X X X X ..... respect of the alleged cash deposit in the bank account of the Appellant. 2. That on the facts and circumstances of the case, the CIT(Appeals) erred in not appreciating that the order passed by the AO is illegal and bad in law inasmuch as the same has been passed merely on conjectures and surmises, without affording adequate opportunity of being heard to the Appellant and was violative of principles of natural justice. 3. That the CIT(Appeals) erred on facts and in law in upholding initiation of reassessment proceedings under Section 147/148 of the Act without appreciating that (i) the reasons recorded were based on stale information and having no nexus with the purported information; (ii) there was no income escaping assessment inasm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for the assessee pointed out that the reopening was made on the basis of the bank information of cash deposits in the assessee's account held with Syndicate Bank of Rs. 25,49,500/-. However, the Assessing Officer himself records the fact that only Rs. 11,33,000/- was found to have been deposited in the bank account of the assessee. Therefore, the information so received was not correct and formation of belief was on the basis of incorrect information. He contended that the reopening is vitiated on the count that Firstly, there is no proper application of mind by the authorities in approving proposal for reassessment of the assessment. The reasons have been recorded in mechanical manner. Undisputedly, the information supplied to the Assessi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ced by the assessee. The Revenue could not rebut the error. Hence, in my view the information based upon which the reopening was made is found to be incorrect. It is settled position of law that the formation of belief for escapement of income should be based on correct and true information. However, admittedly incorrect figure transfer of cash deposit in the assessee's account was mentioned in the information on the basis of which the Assessing Officer formed his belief of escapement of income. Further, nothing is placed on record to suggest that the Ld. CIT by granting approval had examined the record and applied his mind as there is no justification regarding difference in the amount deposited in bank account and mentioned in the reason ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r. 12. I have heard the parties. I find that Assessing Officer made addition by observing as under:- "4. All the replies tiled by the assessee time to time have been perused but not found tenable for the following reasons: (i) On perusal of bank account statement of Syndicate Bank of the assessee for the period 01.04.2010 to 31.03.2011. It is true that the assessee deposited cash to the tune of Rs. during F. Y.2010-11 in her bank account. The tabulated below: S. No. Date Amount in Rs. Deposited in Cash 1 08.04.2010 500 2 22.07.2010 49000 3 23.07.2010 49500 4 24.07.2010 49000 5 31.07.2010 49000 6 03.08.2010 45000 7 05.08.2010 12000 8 19.08.2010 49000 9 04.09.2010 30000 10 19. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 10. On perusal of the impugned agreement, it is noticed that this agreement was executed between Sh. Vijay Kumar, Ajit Singh (First Party) and Premparkash, Chandraparkash Krishankumar, LaIsingh (Second Party). As per this agreement, the first party-received a sum of Rs. 40.00,000/- in advance from the second party for sale of 67 Kanal and 03 Marla land situated at Mauja Rajupur. Teh. & Dist. Palwal, Haryana. If it is time being assumed that Sh. Ajit Singh would have received cash in the form of advance then it would he only Rs. 20,00,000/- since 50% share was of Sh. Vijay Kumar which is apparent from the impugned agreement. (iv) As such, the statements of the assessee are contradictory in itself. As per the Donation letter stated to hav ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 03.04.2010 8,000 23.07.2010 5,50,000 04.05.2010 1,000 07.08.2010 5,00,000 07.06.2010 7,000 09.08.2010 5,00,000 18.06.2010 13,000 Total 24,50,000 02.06.2010 3,000 16.07.2010 2,500 Total 34,500 On perusal of the entries of cash flow in the account of Sh. Ajit Singh during F.FY. 2010-11, it is more than clear that there was no cash in the hand of Sh. Ajit Singh to gift Rs. 11,00,00/- to his daughter-inITA law. As per the replies of the assessee as well as copy of donation letter, her father-in-law donated her Rs. 11,00,000/- on 21.07.2010. However, if it is time being assumed that Sh. Ajit Singh would have received cash in the form of advance then it would be only ..... X X X X Extracts X X X X X X X X Extracts X X X X
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