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TMI Blog2022 (5) TMI 1442X X X X Extracts X X X X X X X X Extracts X X X X ..... eard assessees as well as the department. Case files perused. 2. It is noticed first of all that the assessees' respective pleadings challenge correctness of the learned lower authorities action invoking section 148/147 mechanism by recording the following reasons : "In the case of M/s. Sinhagad Technical Education Society and Shri Maruti Navale Group, the search and seizure operation u/s.132 of the Income Tax Act, 1961 was conducted on 06/08/2013. The examination of assessee's savings Bank account statement of account number 7194 at Sangole Urban Co-operative Bank, Sangole, Dist - Solapur (SUCB, Sqangole), and other bank accounts for the period F.Y. 2008-09 to 2011-12 and after careful perusal, it is noticed that shri Sukhdeo Nivrutti N ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nakshi Overseas Pvt. Ltd. Vs. CIT (2017) 395 ITR 677 and PCIT Vs. RMG Polyvinyl Ltd. (2017) 83 taxmann.com 348 (Del.) This is coupled with the hon'ble jurisdictional landmark decision in Hindustan Lever Ltd. vs. R.B. Wadkar (2004) 268 ITR 332 held long back that the reopening reasons have to be read on standalone basis without any scope of addition, deletion or substitution therein even if supportive material emerges at a later stage. 4. Mr. Desai sought to buttress the point that these assesses' have been found to have made cash deposits in their respective bank accounts. I find no substance in the Revenue's instant argument as well in light of Bir Bahadur Singh Sijwali Vs. ITO (2015) Tax Corp (AT) 39421 (ITAT-DELHI) held as under : "5. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... alone basis. Nothing can be added to the reasons so recorded, nor anything can be deleted from the reasons so recorded. Hon'ble Bombay High Court, in the case of Hindustan Lever Ltd. vs. R.B. Wadkar [(2004) 268 ITR 332], has, inter alia, observed that "..........It is needless to mention that the reasons are required to be read as they were recorded by the AO. No substitution or deletion is permissible. No additions can be made to those reasons. No inference can be allowed to be drawn on the basis of reasons not recorded. It is for the AO to disclose and open his mind through the reasons recorded by him. He has to speak through the reasons." Their Lordships added that "The reasons recorded should be self-explanatory and should not keep th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... category consists of the facts which, if established to be correct, will have a cause and effect relationship with the income escaping the assessment. The latter category consists of the facts, which, if established to be correct, could legitimately lead to further inquiries which may lead to detection of an income which has escaped assessment. There has to be some kind of a cause and effect relationship between reasons recorded and the income escaping assessment. While dealing with this aspect of the matter, it is useful to bear in mind the following observations made by Hon'ble Supreme Court in the case of ITO Vs Lakhmani Mewal Das [(1976) 103 ITR 437], " the reasons for the formation of the belief must have rational connection with or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y to examine these reasons on the basis of any other material or fact, other than the facts set out in the reasons so recorded, it is not open to us to deal with the question as to whether the assessee could be said to be engaged in any business; all that is to be examined is whether the fact of the deposits, per se, in the bank account of the assessee could be basis of holding the view that the income has escaped assessment. The answer, in our humble understanding, is in negative. The Assessing Officer has opined that an income of Rs 10,24,100 has escaped assessment of income because the assessee has Rs 10,24,100 in his bank account but then such an opinion proceeds on the fallacious assumption that the bank deposits constitute undisclosed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the original assessment proceedings, the assessee had not disclosed the material facts truly and fully and, therefore, income chargeable to tax had escaped assessment" and we are unable to see anything on the facts of the present case which are materially similar to the facts of the said case. As regards her reliance on the decision of a coordinate bench in the case of Mithila Credit Services Limited Vs ITO (ITA No. 1078/Del/2013; order dated 23.5.2014), it is important to bear in mind the fact that it was a case in which the Assessing Officer had reopened the assessment on the basis of receipt of information from Directorate of Investigation, and, as noted by the Assessing Officer in the reasons recorded for reopening the assessment, " ..... X X X X Extracts X X X X X X X X Extracts X X X X
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