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TMI Blog2021 (2) TMI 722X X X X Extracts X X X X X X X X Extracts X X X X ..... 147 of the Act as valid, partly sustained the assessment order by deleting the additions of Rs. 12,20,080/- (out of Rs. 24,40,1601/-) and Rs. 2,45,130/- in respect of bank deposits and credit card payments respectively. 4. The Assessee challenged the impugned order before this Tribunal by raising the following grounds of appeal:- "1. That under the facts and circumstances of the case the additions made by the AO (in short 'AO'), vide orders passed u/s. 143(3) r.w.s. 147 of IT Act, that to the extent sustained partly by the ld. CIT(A) (in short 'CIT(A)'), are against the facts of the case and provisions of law. 2. The ld. CIT(A) is not correct in dismissing the ground when the assessee challenged that the notice issued u/sec. 148 of the IT Act is not valid in the eyes of the law, therefore the consequential assessment is bad in law. 3. The ld. CIT(A) could not have summarily concluded and dismissed the ground pertaining to the validity of issue of notice u/sec. 148 and the consequential order passed u/sec. 143(3) r.w.s. 147 of the IT. Act when the assessee challenged that the AO has not material at his disposal construed that he has reason to believe that inco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3(1), it's been mentioned that there have been deposits to the tune of Rs. 24,40,160/- in my bank accounts. To the best of my knowledge, I am completely unaware and had any clue of any such deposits being made by me in any of my accounts. Also, it's been mentioned that time deposit and draft deposit of above one lakh are there in ICICI Bank. To the best of my knowledge I don't have an account with ICICI Bank. Kindly provide me further details, like bank name & account number with clarity which could enable me to help you with more accurate info from my side. Kindly do the needful. Regards, Ramesh Babu Kasapu. AUKPK6318B" 9. In the reasons recorded dated 27/08/2018, the AO has alleged that as per the data available in ITS view under CIB data, the Assessee had made deposits to the tune of Rs. 24,40,160/- in the Nationalised Bank during the F.Y. 2010-11, against which Assessee has not filed any return of income for the A.Y. 2011-12. Further, AO opined that the source of income for the deposits made by the Assessee during the F.Y. 2010-11 are to be verified. Therefore, he has a reason to believe that income of Rs. 24,40,160/- is chargeable to tax has esca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ould with due diligence have been discovered by the AO will not necessarily amount to disclosure within the meaning of the foregoing proviso. Explanation 2- For the purposes of this section, the following shall also be deemed to be cases where income chargeable to tax has escaped assessment namely:- (a) where no return of income has been furnished by the assessee although his total income or the total income of any other person in respect of which he is assessable under this Act during the previous year exceeded the maximum amount which is not chargeable to income tax. (b) Where a return of income has been furnished by the assessee but no assessment has been made and it is noticed by the assessing officer that the assessee has understated the income or has claimed excessive loss, deduction, allowance or relief in the return. (c) Where an assessment has been made, but- (i) income chargeable to tax has been under assessed; or (ii) such income has been assessed at too low a rate; or (iii) such income has been made the subject of excessive relief under this act; or (iv) excessive loss or depreciation allowance or any other allowance under this act has been computed." 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al to substantiate the initiation of process u/s. 147 of the Act and ever incorporated the material before re-opening the assessment and satisfied himself before issuing the notice u/s. 148 of the Act. It is clear that the Assessing Officer failed to make any exercise for reopening of the case independently and with corroborative material. The reasons recorded cannot be a vague and there is lot of difference between reasons to believe and reasons to suspect. The reasons to believe must form an definite base and has to be considered in sanctity. 15. Punjab and Haryana High Court in the case of Commissioner of Income Tax vs. Smt. Pramjit Kaur [2009] 311 ITR 38 (P&H) while analyzing the reasons recorded, held as under:- "7. It is undisputed that the Assessing Officer had initiated reassessment proceedings on the basis of information received from the survey circle that the assessee had got prepared a demand draft for a sum of Rs. 83,040 which was not accounted in the books of account of the assessee. The Assessing Officer had not examined and corroborated the information received from the survey circle before recording his own satisfaction of escaped income and initiating reassessm ..... X X X X Extracts X X X X X X X X Extracts X X X X
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