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TMI Blog2025 (5) TMI 99X X X X Extracts X X X X X X X X Extracts X X X X ..... ated 24/03/2020 u/s 148 of the Act was issued by the AO asking the assessee to file his return of income. Vide notice issued u/s 142(1), dated 03/02/2021, the assessee was asked to furnish compliance on certain queries :- "1. The reason for reopening of your case for AY 2013-14 is as under: 1. The assessee is an individual and he has not filed return of income for AY 2013- 14. 2. As per Information//TS/ 360 Degree details available with this office for the A.Y. 2013-14, it is found that the assessee has deposited cash amount of Rs. 24,00,000/- in his bank accounts maintained with /C/C/ Bank. Hence, after obtaining prior permission of the Pr. CIT-3. Ahmedabad, notice u/s 133(6) of the Act has been issued to the concerned bank/branch. In response to the same. the assessee has submitted reply. However, the same was not found acceptable and needs further verification. 3. As per information available with this office, it is found that the assessee has deposited Rs. 24,00,000/- by cash in his bank account. The notice u/s. 133(6) of the I. T. Act issued to bank after toking prior permission of Hon'ble PCIT-3, Ahmedabad and the bank statement of the assessee called for. As the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ration is deemed to be a case where income chargeable to tax has escaped assessment. In this case more than four years have lapsed from the end of assessment year under consideration. Hence, necessary sanction to issue notice u/s. 148 is requested from the Principal Commissioner of Income Tax as per the provisions of section 151 of the Act. 2. In your case, notice under section 148 of the Income-tax Act, 1961 was issued on 24.03.2020 wherein it was requested to furnish ITR for the AY 2013-14 in response to the said notice. However, it is seen that till date you have not furnished ITR for A.Y. 2013-14 Therefore you are once again requested to furnish the ITR for A.Y. 2013-14 in pursuance of notice under section 148 of the Income-tax Act, 1961 dated 24.03.2020. 3. In this regard you are requested to submit the following details: i) Please furnish your computation of income for the A.Y. 2013-14. ii) It is noticed that during the F.Y: 2012-13, there was deposit of Rs. 24,00.000/- in cash in ICICI Bank. In view of this you are requested to furnish proof of source of cash deposits along with documents in support of your claim. iii) Copy of all your bank statements" 5. The as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arlier after receiving notice under section 148 was due to pandemic. I believe Govt, of India has granted a general extension of dates in this regard till 31/03/2021. However, now I have submitted my return for AY 2013-14 online and copy of my computation of income as asked in the notice is attached herewith. The copy my bank statement, as asked in the notice, is also attached herewith. I would also like to mention that the information regarding cash deposit by me had been earlier made available to me through compliance portal of Income Tax Department against which I had submitted my reply online on 3rd of August 2015 vide Acknowledgement Number 11690023030815 (copy attached). It is clear that department was having this information with them in the year 2015 itself still they chose to reopen the case only in the month of March 20. Your notice is dated 3rd of February and I have been asked to submit my reply within a short period of 5 days, by 8th of February (which included 2 non working days of Saturday and Sunday also). Due to this paucity of time given to me, I request you that if any further clarification, information, evidence or document in above matter is expected from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s for the year under consideration and assessed accordingly. 4. As the assessment is a time barring one i.e. getting barred by limitation on 30.09.2021, your co-operation is solicited in completion of the assessment proceedings in your case. Therefore, keeping in mind the principle of natural justice, an opportunity to submit the details/information requisitioned vide the said notices/letters is provided herewith. 5. Your reply, if any, should reach to the undersigned online electronically in 'E- Proceeding' facility through your account in e-filing website [www.incometax.gov.In]on or before 27.09.2021 at 2:00 P.M. No further opportunity will be granted to you in this matter, which may please be noted." 7. The assessee filed a detailed reply which reads as under :- Submission Date 24/09/2021 To ITO WARD 3(3)(5) AHMEDABAD In the Matter Of Assessee SHAS HANK SUNILENDU ROY PAN ARGPR9638A A.Y. 2013-14 In response to Proceedings Assessment u/s. 147 Letter/Notice Dt. 23/09/2021 DIN No. ITBA/AST/F/142(l)/2021-22/1035840955(l) U/s. 142(1) "Dear Sir, I am in receipt of above mentioned notice and would like to submit as follows in this regard- 1. At t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. 6. Further to my above submissions, I am reproducing below, the submissions I have made to National Faceless Assessment centre in response to their notice in the matter: i. From January 2011 to May 2015,1 was a student of Aero Space Engineering course in Florida Institute of Technology, USA and was studying in USA itself(copy of my Student I'd Card attached). Being away from India since 2011, there was no occasion for me to earn any income in India during financial year 12-13 (AY 13- 14). ii. The cash which has been deposited in my bank account is savings of my mother out of her pin money and savings of my father out of his salary income. I am attaching bank statements of my father and my mother where there is regular withdrawal from the bank. My father Mr. Sunilendu Roy was working at that time in pharmaceutical company M/s. ZydusCadilla, Ahmedabad as President. My father is a regular Income Tax Assessee and filed his return of income regularly. He is also a joint account holder with me in the bank account under consideration. My parents have deposited this money in order to pay the fees and expenditure of my education. iii. I would also like to mention that the inf ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ith reasons to believe that income has escaped assessment. The rejection by your goodself of my objections for reopening is devoid of any merits. 3. I would also like to bring to your kind notice that judiciary has unequivocally held that mere cash deposit in the bank can not be a reason for reassessment. Following are some important citations in this regard : * Ashish Natvarlal Vashi Vs. The Income Tax Officer, Ward-1, Navsari (ITA NO.3522/AHD/2016- SURAT BENCH)- Held as follows o We note that Assessing Officer has opined that an income of Rs. 22,77,550/- has escaped assessment of income because the assessee has deposited Rs 22,77,550/- in his bank account but then such an opinion proceeds on the fallacious assumption that the bank deposits constitute undisclosed income, and overlooks the fact that the sources of deposit need not necessarily be income of the assessee. The amount deposited in the bank account may be out of sale proceeds of investments, property or agricultural income of the assessee which may be exempted under the Income Tax Act. Of course, it may be desirable, from the point of view of revenue authorities, to examine the matter in detail, but then reassessme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... By assuming jurisdiction conferred upon him by the provisions of Section 263 of the Act, the ld. CIT revisited the same facts and came to the conclusion that the assessment order dated 29/09/2021 is not only erroneous but prejudicial to the interest of the revenue. 10. The issues raised by the ld. CIT in assuming jurisdiction u/s 263 of the Act, we find that all the issues have been considered by the AO during his enquiries before framing the impugned assessment order. If the ld. CIT was of the firm belief that the AO has not conducted proper enquiries, nothing prevented him to conduct enquiries as held by the Hon'ble Supreme Court in the case of DG Housing Projects Limited [2012] 343 ITR 329. The relevant part of the decision of the Hon'ble Supreme Court reads as under :- "" Section 263 has been enacted to empower the CIT to exercise power of revision and revise any order passed by the Assessing Officer, if two cumulative conditions are satisfied. Firstly, the order sought to be revised should be erroneous and secondly, it should be prejudicial to the interest of the Revenue. The expression „,prejudicial to the interest of the Revenue" is of wide import and is not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 263 of the Act. In such matters, to remand the matter/issue to the Assessing Officer would imply and mean the CIT has not examined and decided whether or not the order is erroneous but has directed the Assessing Officer to decide the aspect/question. This distinction must be kept in mind by the CIT while exercising jurisdiction under Section 263 of the Act and in the absence of the finding that the order is erroneous and prejudicial to the interest of Revenue, exercise of jurisdiction under the said section is not sustainable. In most cases of alleged "inadequate investigation", it will be difficult to hold that the order of the Assessing Officer, who had conducted enquiries and had acted as an investigator, is erroneous, without CIT conducting verification/inquiry. The order of the Assessing Officer may be or may not be wrong. CIT cannot direct reconsideration on this ground but only when the order is erroneous. An order of remit cannot be passed by the CIT to ask the Assessing Officer to decide whether the order was erroneous. This is not permissible. An order is not erroneous, unless the CIT hold and records reasons why it is erroneous. An order will not become erroneous be ..... X X X X Extracts X X X X X X X X Extracts X X X X
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