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TMI Blog2022 (6) TMI 142X X X X Extracts X X X X X X X X Extracts X X X X ..... s notice as well. Subsequently, after issuance of notice u/s 142(1) of the Act, there was a response from the side of the assessee who furnished his reply through registered post supplying the copy of the sale deed of the agricultural land for Rs. 5,00,000/-, copy of bank account and pension certificate. The assessee was further asked to attend the assessment proceedings and justify the cash deposit in the savings bank account. As per the assessment order, numerous opportunities were given to the assessee to justify the cash deposit, but no further response was forthcoming from the assessee. In such a situation, the Assessing officer, after allowing benefit of sale consideration of Rs. 5,00,000/, proceeded to add amount of Rs. 65.01,000/-, credited in the saving bank account of the assessee, as income from undisclosed sources. The Assessing officer also made an addition of Rs. 25,372/- being interest from the said saving account. The assessment was completed at an income of Rs. 65,26,372/-. 2.1 The assessee preferred an appeal before the Ld. First Appellate Authority, wherein, the assessee was allowed a further relief of Rs. 6,20,000/- pertaining to sale of another land after admi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... losed sources of income. I have, therefore, reasons to relieve that a sum of Rs. 70,01,000/- has escaped assessment within the meaning of section 147/148 of the I.T. Act, 1961 for the period relevant to the assessment year 2011-12. Issue notice u/s 148 of the I.T. Act, 1961 for the assessment year 201112." 4.1 The Ld. AR submitted that from the perusal of the reasons and the assessment order it was apparent that the Assessing officer had reopened the case merely on the basis of AIR information of cash deposit and that there was no cogent reason to believe that any income of the assessee had escaped assessment. It was submitted that merely because the assessee had deposited the cash in his bank account would not mean that the income of the assessee had escaped assessment. It was argued that a perusal of the reasons would show that the Assessing officer had simply recorded his satisfaction but had not real reasons to believe that any income had escaped assessment. It was submitted that the Assessing officer had proceeded on a fallacious assumption that the deposit in the bank account would tantamount to escapement of income. 4.2 The Ld. AR also drew our attention to the lett ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is nothing to suggest that the assessee could generate any unaccounted income. The lack of proper compliance was not intentional or willful but due to lack of awareness. The appellant is a law abiding person. He has retired from armed forces. He is innocent and disciplined citizen. He has not evaded any tax. 3.3 The appellant does not have any educated person in the family. His one son expired, in his youth, a few years ago after a prolonged illness. After the death of his some the family is under enormous grief, dire mental stress and deep mental agony. His wife and the widow daughter in law are under deep mental pressure. The assessee, who is of 67-78 years age, suffers from various chronic ailments. He has no assistance of an advocate. The assessee is not in good health, illiterate, having no awareness of Tax laws and consequences and having no assistance of any family member for complying with his legal obligations and obtaining the legal remedies. As such the assessee could not produce complete evidence to the satisfaction of the Ld AO. In view of the above stated facts and circumstances of the case the assessee was prevented by sufficient cause in producing these evide ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed that it was apparent from a plain reading of the assessment order that the Assessing officer had applied his mind after receiving information through the AIR but prior to recording of satisfaction for issuance of notice u/s 148 of the Act. The Ld. Sr. DR harped on the undisputed fact that the Assessing officer's initial inquiry u/s 133(6) of the Act had gone un-responded by the assessee and that even after numerous opportunities having been offered to the assessee, the assessee did not respond to the query letter issued by the Assessing officer. The Ld. Sr. DR supported the reopening on the ground that the Assessing officer had tangible material with him which was based for reopening of the assessment. She also argued that the assessee did not raise any objection to the initiation of re-assessment proceeding during the course of assessment proceedings. On merits, it was submitted by the Ld. Sr. DR, relief had already been given by the Ld. CIT(A) on the basis of sale deed filed by the assessee in this regard. The Ld. Sr. DR submitted that the re-assessment proceedings in this case were perfectly justified. 6.0 We have heard the rival submissions and have also perused the materia ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncies like Investigation Wing, CIB, Enforcement Directorate or from other Assessing officer is information for the purpose of initiation of reassessment proceedings. The Ld. CIT(A), while dismissing the assessee's challenge to the reopening on the legal ground, placed reliance on the numerous judicial precedents which have been incorporated in the body of the impugned order. The Ld. CIT(A), however, admitted additional evidence in the form of another sale deed of Rs. 6,20,000/- against the Viska No. 822 and directed the Assessing officer to delete the addition of Rs. 6,20,000/- but confirmed the remaining amount. Before us also, the Ld. AR has argued vehemently against the assumption of jurisdiction u/s 148 of the Act and the main thrust of his arguments have been that the Assessing officer could not have proceeded to initiate the impugned proceedings simply based on AIR information. The Ld. AR has also relied on the numerous judicial precedents, wherein, it has been held that it would be incorrect to assume jurisdiction u/s 148 of the Act by reaching a conclusion that bank deposits would be constituting income which has escaped assessment. 6.2 We have gone through the judicial pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... R 34(SC), their Lordshisp rejected the challenge to the notice issued for reassessment by observing that at this stage, the Court can only consider whether there is a prima facie case for reassessment and reopening of the proceedings cannot be struck down by going into the sufficiency or correctness of the material relied upon by the assessing authority for that purpose. 6.4 In the present case, the onus was initially on the assessee to explain before the Assessing officer, the source of bank deposits but his non- compliance left no option with the Assessing officer but to issue notice u/s 148 of the Act. The law as laid down by the Hon'ble Apex Court and the Hon'ble Punjab & Haryana High Court as stated above, still holds good. Similarly, the Chandigarh Bench of the ITAT in the case of ACIT Vs. Kisco Castings Pvt Ltd reported in 152 TTJ 629 (Chandigarh Tribunal) has held that where the information is factual and not false and the same has merely been communicated to the Assessing officer, he would be within his statutory right to invoke the provisions of section 147 read with 148 of the Act. The Coordinate Bench of the Tribunal went on to hold that the information being factu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... only from agricultural activity as well as from pension. We also note that in the paper book which has been filed by the assessee, the assessee has filed copy of letters as obtained by commission agent that assessee had received an amount of Rs. 50,00,000/- during the year from sale of agricultural receipts. The assessee has also filed affidavit on his own behalf as well as of Shri Sukhjinder Singh, Numberdar, wherein, it has been stated that the actual value of the land sold by the assessee was Rs. 70,00,000/-. Although, these evidences were filed as additional evidences before the Ld. CIT(A), the Ld. CIT(A) did not accept them as there was no further corroborative evidence in support of the same. However, ignoring the past conduct of the assessee and on the peculiar facts of this case, duly noting that the assessee is a retired Army veteran, we would like to afford one more opportunity to him to explain the source of deposits before the Ld. First Appellate Authority and to come out with clean hand once of all. Therefore, in the interest of substantial justice, we restore this appeal to the file of the CIT(A) to be decided on merits of the addition after affording due opportunity ..... X X X X Extracts X X X X X X X X Extracts X X X X
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