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TMI Blog2020 (8) TMI 589X X X X Extracts X X X X X X X X Extracts X X X X ..... , 2010. However, without considering the same, the ld. CIT (A) upheld the reopening of the assessment by recording the reasons on incorrect facts. Hence in the facts and circumstances of the case, we find that the reopening of the assessment by the AO is without application of mind and simply going by the information received as per AIR Data. Hence the reopening of the assessment is quashed being invalid. - Decided in favour of assessee. - ITA No. 536/JP/2019 - - - Dated:- 18-3-2020 - Shri Vijay Pal Rao, JM And Shri Vikram Singh Yadav, AM For the Assessee : Ms Suhani Maharwal (CA) For the Revenue : Ms Chanchal Meena (JCIT) ORDER PER VIJAY PAL RAO, J.M. This appeal by the assessee is directed against the order dated 21st February, 2019 of ld. CIT (A) for the assessment year 2009-10. The assessee has raised the following grounds of appeal :- 1. On the facts and in the circumstances of the case, ld. AO erred in reopening of assessment u/s 148 and ld. CIT (A) erred in sustaining the same which is illegal, unjustified and liable to be quashed. 2. On the facts and in the circumstances of the case, ld. AO erred in assessing income u/s 144 by ignoring ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f income as for the assessment year 2010-11 instead of assessment year 2009-10. The return of income was duly acknowledged vide Acknowledgement Number given in the said computation sheet. Therefore, ignoring the return of income filed by the assessee for the year under consideration declaring the salary income and further when all the transactions of payment of credit card bills are through the bank account then the reopening is not valid merely for the purpose of verifying whether the income on account of the said payment of bills has escaped or not. The ld. A/R has thus contended that the reopening based on incorrect facts and ignoring the return of income filed by the assessee is not valid and liable to be quashed. In support of her contention, she has relied upon the decision of the coordinate Bench of this Tribunal dated 10.10.2019 in case of Shri Ram Mohan Rawat vs. ITO in ITA No. 1014/JP/2018 and submitted that the Tribunal on identical facts where the AO without considering the return of income under section 139(1) has reopened the assessment by recording reasons that the assessee has not filed any return of income has held to be invalid. The ld. A/R has also relied upon th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it is clear that the AO has reopened the assessment only on suspicion of escapement of income on account of credit card payment of ₹ 3,85,336/- without considering the fact that the assessee already filed his return of income declaring total income of ₹ 2,34,560/- as income under the head Salary . The AO during the course of assessment proceedings verified the income of the assessee from M/s. Genpact India as well as the details of the credit card payment from Citibank and the AO has received the requisite details from the said company. The assessee explained these facts before the ld. CIT (A) which were duly recorded by the ld. CIT (A) in para 2.2 as under :- 2.2. The relevant extract of the submission of the appellant is as under :- This appeal was preferred against the order u/s 144 read with section 148 of the I.T. Act, 1961 for A.Y. 2009-10. At the outset, I request to admit the new grounds of appeal, which may be treated as replaced with originally raised grounds and are as under :- 1. On the facts and in circumstances of the case, ld. AO erred in reopening of assessment u/s 148 of the I.T. Act, 1961, which is unjustified and liable to be quashe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under :- 2.3. I have perused the facts of the case, the assessment order and the submissions of the appellant. The Assessing Officer had reason to believe on record for this year. There was information that assessee made payment of ₹ 3,85,336/- through credit card and Assessing Officer had thus reason to believe that income to this extent had escaped assessment. This ground of appeal is dismissed. Once the assessee has pointed out the filing of return of income as well as all other details of source of payment of credit card bills which are all through banking channel and moreover transactions are on-line payment from the bank account of the assessee, then without considering all these facts, the order passed by the ld. CIT (A) rejecting the ground is highly arbitrary. The Coordinate Bench of this Tribunal in case of Shri Ram Mohan Rawat vs. ITO (supra) has considered this issue in para 5 as under :- 5. I have considered the rival submissions as well as the relevant material on record. The AO has reopened the assessment by recording the reasons as under :- As per information, the assessee has made bogus purchases of ₹ 24,02,235/- during the year und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ering an identical issue has observed in para 10 11 as under :- 10. We are conscious that in the present case, the return filed by the assessee was not taken in scrutiny. Nevertheless, in such a case also the requirement that the Assessing Officer must have reason to believe that income chargeable to tax has escaped assessment, would apply. Reference in this respect can be made to the decision of this Court in case of Inductotherm (India) P. Ltd. vs. M. Gopalan, Deputy Commission of Income-Tax reported in (2013) 356 ITR 481 (Guj.). Validity of the reasons recorded by the Assessing Officer would therefore be one of the issues. 11. In this context, we have noted that the reasons proceeded on two fundamental grounds. One, that the property in question was sold for a sum of ₹ 1,18,95,000/- and two; that the assessee had not filed the return and that therefore his 1/3rd share out of the sale proceeds was not offered to tax. Both these factual grounds are totally incorrect as is now virtually admitted by the Revenue. It is undisputed that the assessee had actually filed the return of income for the said assessment year and income also offered his share of the declared ..... X X X X Extracts X X X X X X X X Extracts X X X X
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