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TMI Blog2019 (9) TMI 346X X X X Extracts X X X X X X X X Extracts X X X X ..... ent in purchase of shares of various companies amounting to Rs. 11,87,530/- during the assessment year under appeal. It was found that assessee has not filed return of income for assessment year under appeal. Therefore, source of the aforesaid cash deposit and purchase of shares remains unexplained by failure of assessee to file return of income. The assessment was reopened under section 147 of the Income Tax Act, 1961. The assessee claimed before assessing officer that he has made cash deposits of Rs. 7,50,000/- on three dates only. The assessing officer accordingly made the addition of Rs. 7,50,000/-. 3. The assessee challenged the addition before the Ld. CIT(A). The explanation of assessee and source is reproduced in the appellate or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rious companies amounting to Rs. 11,87,530/-. From the ITD data base, it is found that assessee has not filed his return of Income for the A.Y. 2010-11. In this respect, NMS notice was issued to the assessee but no reply has been filed by the assessee. As the assessee has not filed the return of Income, the source of cash deposits as well as investment in shares of various companies remains unexplained. Therefore, 1 have reason to believe that on account of failure on the part of the assessee to explain the source of cash deposits and investment in shares, income to the tune of Rs. 20,87,530/-, has escaped assessment for the A.Y. 200-11 within the meaning of Section 147 of Income Tax Act, 1961. In view of above proceedings u/s. 147 of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee was asked to explain nature of source of entry of Rs. 14,75,000/- in S.B. account of the assessee. The A.O. noted that assessee has not filed satisfactory explanation regarding cash deposit in Axis Bank, therefore, it was treated as unexplained deposit under section 69A of the I.T. Act and made the addition of Rs. 14,75,000. 3. The assessee challenged the above addition before Ld. CIT(A) and it was submitted that assessee is Maulvi for Arabic Religious and Teacher and teaching Arabic in the Masjid. He has prestige in the society and trustworthy in the community. People coming to him for pious purposes, giving money for safe deposit and take back whenever required. The assessee deposited the amount in bank account which was lat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessment with in meaning of sec 147 of Income Tax Act, 1961. The case for assessment year 2007 -08 is taken up for assessment u/s. 147 of I. Tax Act, 1961." 5.1. He has submitted that mere deposit of the cash in the bank account is not sufficient to believe that income chargeable to tax has escaped assessment, therefore, reopening of the assessment is bad in law. It was submitted that the issue is covered in favour of assessee by order of ITAT, SMC-Bench in the case of Shri Arvind Yadav vs. ITO, Ward-1(1), New Delhi ITA.No.1508/Del./2017 for the A.Y. 2008-2009, Dated 07.07.2017, in which the Tribunal on identical facts, set aside the orders of the authorities below and quashed the reopening of the assessment vide order dated 07.07.2017 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... esumed that cash deposited in the bank account has escaped assessment. The deposit in the bank account per se cannot be income of the assessee. It is mere suspicion of the Assessing Officer based on incorrect fact that income chargeable to tax has escaped assessment. The issue is therefore covered in favour of assessee by order of ITAT SMC Delhi Bench in the case of Tajendra Kumar Ghai (supra). In view of this matter, I am of the view that the Assessing Officer has wrongly assumed jurisdiction u/s 147 of the Income Tax Act for the purpose of reopening of the assessment. I accordingly set aside the orders of the authorities below and quash the reopening of the assessment in the matter. Resultantly, the addition made in the reassessment wou ..... X X X X Extracts X X X X X X X X Extracts X X X X
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