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TMI Blog2020 (12) TMI 980X X X X Extracts X X X X X X X X Extracts X X X X ..... the Assessing Officer was not sure whether income had escaped to tax or not. No notice under section 148 can be issued merely on such suspicion. There has to be a reasonable material before the Assessing Officer on the basis of which a reasonable person can make requisite belief. In the instant case, there is lack of reasonable material to form a reasonable belief that income has escaped tax. Under the circumstances, the action of the AO of reopening assessment in exercise of the power under section 148 of the Act cannot be sustained. Accordingly, we quash the re-assessment proceeding initiated in the case of the assessee. X X X X Extracts X X X X X X X X Extracts X X X X ..... he notice u/s 148 and assessment framed may kindly be quashed though only as an a relative it is also prayed that the additions of ₹ 18,59,000/- may kindly be quashed." 2. Briefly stated facts of the case are that assessee, an individual, was engaged in agricultural activity during the relevant year. In the case of the assessee, an information was received through annual information return (AIR) that the assessee had deposited ₹ 23,59,000/- in his saving bank account maintained with the Punjab National Bank, Shamli (Uttar Pradesh). On being asked by the Assessing Officer, the assessee submitted explanation of source of deposit, however, the AO was not satisfied with the explanation of the assessee. In view of the information, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. Vs. CIT & Anr., reported in 389 ITR 326 (P&H) has held that for raising the ground, the assessee can seek leave of the Tribunal orally also. The relevant finding of the Hon'ble High Court is reproducing as under: "Rule 11 in fact confers wide powers on the Tribunal, although it requires a party to seek the leave of the Tribunal. It does not require the same to be in writing. It merely states that the appellant shall not, except by leave of the Tribunal, urge or be heard in support of any ground not set forth in the memorandum of appeal. In a fit case it is always open to the Tribunal to permit an appellant to raise an additional ground not set forth in the memorandum of appeal. The safeguard is in the proviso to Rule 11 itself. The pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is admitted. 7. In the additional ground, the assessee has contested that notice issued under section 148 of the Act is beyond jurisdiction being without any 'reason to believe' and 'satisfaction' of the Assessing Officer. The Learned Counsel of the assessee filed a paper-book containing pages 1 to 74 and referred to copy of reasons recorded available on page 5 of the paper-book. According to him in the reasons recorded the Assessing Officer has mentioned that further investigation was required to find out the actual source of the cash deposits. The learned Counsel submitted that no notice under section 148 can be issued merely for investigation/roving inquiries. In support of his contention, he relied on following decisions: 1. PCIT Vs. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y alongwith documents as required, which are placed on record. As the contention of the assessee cannot be relied upon, further investigation is required to find out the actual source of cash deposit made during the relevant previous year. I have, therefore, reasons to believe that the income chargeable to tax to the extent of ₹ 23,59,000/- has escaped assessment by omission on your part to disclose fully and truly all material facts necessary for assessment." 9. We note that Hon'ble Gujarat High Court in the case of Manzil Dinesh Kumar Shah (supra) has held that no roving enquiry could be allowed under the guise of reopening of the assessment. The relevant finding of the Hon'ble High Court is reproduced as under: "7. It is equall ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... formation required deep verification. In plain terms therefore, the notice was being issued for such verification. His later recitation of the mandatory words that he believed that income chargeable to tax has escaped assessment, would not cure this fundamental defect. 10. Learned counsel for the Revenue however urged us to read the reasons as a whole and come to the conclusion that the Assessing Officer had independently formed a belief on the basis of information available on record that income in case of the assessee had escaped assessment. Accepting such a request would in plain terms require us to ignore an important sentence from the reasons recorded viz. 'it needs deep verification'. 11. Before closing, we can only lament at th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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