TMI Blog2023 (4) TMI 992X X X X Extracts X X X X X X X X Extracts X X X X ..... ng satisfied. Hon ble Bombay High Court in the case of CIT vs. Jet Airways (I) Ltd. ( 2010 (4) TMI 431 - HIGH COURT OF BOMBAY ) has held that the AO cannot proceed with re-assessment if the grounds mentioned in re-assessment are non-existent i.e., if no addition is made on that score. When examine the factual scenario obtaining in the instant case on the touchstone of the ratio laid down by the Hon ble jurisdictional High Court in the above decision, the inescapable conclusion which can be drawn is that the addition made in the re-assessment order, different from the one for which notice u/s 148 of the Act was issued and that itself was not made, lacks legality. The same is, therefore, directed to be deleted. Assessment u/s 144 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on of addition of Rs.1,38,192/- made by the Assessing Officer by not granting deduction u/s.80P(2)(a)(i) of the Income-tax Act, 1961 (hereinafter also called the Act ) on the interest income. 4. Briefly stated, the facts of the case are that the assessee is a credit cooperative society, which did not file its return for the year under consideration. The AO initiated re-assessment proceedings by means of notice u/s.148. In such notice, it was alleged that the assessee deposited cash in saving bank account amounting to Rs.1.32 crore and Rs.59.85 lakh with banking company totaling to Rs.1.92 crore, which needed verification. During the course of assessment proceedings, the AO got satisfied with the explanation of the assessee on the propos ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... within due time. The sources of these cash deposit of Rs.1,92,85,640/- is needed to be verified. Similarly, the due taxes arising from these transactions are also remained to be taxed. Therefore, the assessee has failed to disclose the income on account of cash deposits and has escaped assessment . 6. Thus, it is evident that the AO initiated re-assessment proceedings on the ground that the cash deposited in savings bank account and with banking company was not properly verifiable. He, however, eventually got satisfied with the assessee s explanation on the above score. Thereafter, he chose to make an addition towards interest income earned by the assessee and accordingly denied the deduction u/s.80P. It is, therefore, evident that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... did not make any addition on that score but reduced the claim of deduction u/s.80P by denying it on the interest income. Following the view taken hereinabove, I order to delete the addition made for both the years. ITA No.333/PUN/2023 - A.Y. 2017-18 : 9. The assessee in appeal for this year is aggrieved by the confirmation of addition of Rs.22,89,000/- u/s.69A towards cash deposited in the bank account and a further addition amounting to Rs.23,13,273/- towards estimation of income on amount deposited in the bank account. 10. Shorn of unnecessary facts, it is seen that the AO completed the assessment u/s.144 computing total income at Rs.46,02,270/- by making the above referred two additions by means of an ex parte order passed u ..... X X X X Extracts X X X X X X X X Extracts X X X X
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