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TMI Blog2017 (3) TMI 1844X X X X Extracts X X X X X X X X Extracts X X X X ..... ement of income. AO also not recorded any fact in the reasons if agriculture income escaped assessment. Assessing Officer called for the details of agriculture income at original assessment stage and asked for all the evidences in support of declaration of agriculture income - The assessee produced sufficient evidence and material before AO at original assessment stage in support of earning of agriculture income. Therefore, there is no failure on the part of the assessee to disclose fully and truly all material facts necessary for his assessment with regard to computation of agriculture income. The Assessing Officer in the reasons for reopening of the assessment has nowhere recorded if assessee has not fully and truly disclosed all material facts for declaring agriculture income. The record, on the other hand, would reveal that assessee disclosed fully and truly all material facts of earning of agriculture income at the original assessment stage. Therefore, all the facts of earning of agriculture income supported by evidences were within the knowledge of Revenue Department/Assessing Officer at the time of making the original assessment. The assessee has, thus, disclosed all the mat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erring to the same, submitted that re-opening was made mainly on the reasons of excess deposit of ₹ 8,50,594/- in the bank account which was considered as undisclosed income which has escaped assessment. PB-4 is original assessment order under section 143(3) dated 27.12.2006 in which the Assessing Officer after calling explanation of the assessee and proof of land holding and proof of agriculture produce and sale thereof, accepted the agriculture income at ₹ 42 lacs. PB-6 is notice dated 08.09.2006 in which Assessing Officer asked for the details of all the bank accounts and details of all debit and credit entries thereon. The Assessing Officer also called for the details of agriculture income of ₹ 42 lacs supported by proof of agricultural land owned by assessee, details of agriculture crops cultivated, name and address of the parties to whom agriculture produce were sold and copy of Form No.'J'. PB-8 is reply of the assessee before Assessing Officer dated 02.12.2006 furnishing the required details of bank account and bank deposits. PB-10 is another reply dated 11.12.2006 before Assessing Officer in which all the details and evidences of holding of agricultural l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... also eld as under : "Conclusion : AO had conducted a detailed examination and thereafter, assessed the income of the assessee; further fact that another AO had adopted a different method of estimating the income attributable to Indian activities can hardly be a reason to reopen the assessment or to allege that the assessee had failed to truly and fully disclose material facts for the purposes of its assessment; reopening was not therefore sustainable." 6(ii) PB-17 is notice under section 148 of the Act dated 23.03.2010. When this notice was pending, the Assessing Officer further issued notice under section 148 of the Act dated 23.03.2011 (PB-18). PB-14 is the ordersheet. No notice under section 143(2) of the Act have been issued after issuing notice under section 148 on 23.03.2010. The ld. counsel for the assessee, therefore, submitted that during pendency of earlier notice under section 148, no fresh notice under section 148 can be issued. The Assessing Officer, without applying his mind has made re-assessment order which is clearly bad in law. He has, therefore, submitted that re-assessment proceedings may be quashed. On the other hand, ld. DR relied upon orders of the authori ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and entries therein and details of agriculture income with proof. As noted above, the assessee furnished replies before Assessing Officer disclosing complete details of bank deposits and earning of agriculture income with proof of agricultural land owned/cultivated and obtained on lease. All details of agriculture produce sold with necessary evidences were furnished. The Assessing Officer noted these facts in the order-sheet as well. The Assessing Officer after examining the details of income offered by the assessee for taxation and agriculture income noted in the original assessment order under section 143(3) dated 27.12.2006 that assessee filed the proof of land holding and proof of agriculture produce and sale thereof. The assessee also filed the copies of the bank accounts which have been examined and the Assessing Officer accepted the returned income and agriculture income declared at ₹ 42 lacs. However, Assessing Officer in the reasons for re-opening of the assessment noted excess deposit of ₹ 8,50,594/- in the bank account of the assessee, copy of which is filed at page 15-16 of the Paper Book and reproduced as under : Annexure-A Name of the Assessee Sh. Abbe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... INGH) Asstt. Commissioner of Income tax, Central Circle-II, Chandigarh . 9. The Assessing Officer in these reasons for re-opening of the assessment noted the details of source of income and deposit in bank account which were obtained from the returned income and statement of assessable income. The Assessing Officer noted that assessee made excess deposit of ₹ 8,50,594/- in his bank account which has escaped assessment, therefore, assessee has not fully and truly disclosed all material facts necessary for assessment in assessment year under appeal. The Assessing Officer, however, did not make any addition of excess cash deposit in the impugned re-assessment order. The assessee also produ ced sufficient evidence on record to prove that Assessing Officer has taken the lesser bank deposit because ₹ 10 lacs deposit have not been considered by the Assessing Officer in the bank account of the assessee. Ultimately, Assessing Officer was satisfied with the explanation of the assessee of bank deposits, therefore, no addition is made. The reasons recorded by the Assessing Officer were, therefore, wholly incorrect and did not lead to anywhere if there is any escapement of incom ..... X X X X Extracts X X X X X X X X Extracts X X X X
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