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TMI Blog2022 (8) TMI 1220X X X X Extracts X X X X X X X X Extracts X X X X ..... 7, respectively involving proceedings u/s 143(3) r.w.s. 147 of the Income Tax Act, 1961; in short the Act . Heard both the parties. Case files perused. 2. It emerges at the outset the assessees first and foremost substantive issue that arises for my apt adjudication is that of validity of the impugned reopening(s) in both these cases. There is hardly any dispute that the learned lower authorities have taken recourse to section 148/147 mechanism based on the contents of seized material(s) found in the course of the search issue dated 01.10.2013. This admittedly followed the Assessing Officer s identical reopening reasons that the assessees taxable income liable to be assessed had escaped assessment. The same culminated in the impugned additions; involving varying sums, made in both these cases representing unexplained cash credits deposited in bank accounts. The CIT(A) has confirmed the Assessing Officer s action to this effect. 3. I have given my thoughtful consideration to vehement rival contentions and note that the tribunal s common order in very Navale ground involving ITA No.452/PUN/2019 and other cases involving identical reasons, has quashed the corresponding r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ndmark 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. We have heard the rival contentions, perused the material on record and duly considered facts of the case in the light of the applicable legal position. 6. A plain look at the reasons for reopening the assessment, as produced before us, show that these reasons were recorded after the notice was served on 14th September 2009 as a mention about the fact of service of notice is set out in the recorded reasons itself. It is only elementary that the reasons are to be recorded before issuance of notice, and in the absence of any reasons for reopening having been recorded prior to reopening of assessment, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o the hilt. What is, however, necessary is that there must be something which indicates, even if not establishes, the escapement of income from assessment. It is only on this basis that the Assessing Officer can form the belief that an income has escaped assessment. Merely because some further investigations have not been carried out, which, if made, could have led to detection to an income escaping assessment, cannot be reason enough to hold the view that income has escaped assessment. It is also important to bear in mind the subtle but important distinction between factors which indicate an income escaping the assessments and the factors which indicate a legitimate suspicion about income escaping the assessment. The former 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 assessme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s 10,24,100 in his bank account but then such an opinion proceeds on the fallacious assumption that the bank deposits constitute undisclosed income, and overlooks the fact that the sources of deposit need not necessarily be income of the assessee. Of course, it may be desirable, from the point of view of revenue authorities, to examine the matter in detail, but then reassessment proceedings cannot be resorted to only to examine the facts of a case, no matter how desirable that be, unless there is a reason to believe, rather than suspect, that an income has escaped assessment. 9. Learned Departmental Representative has referred to a number of judicial precedents in support of her stand that even deposits in the bank account, as having come to the notice of the Assessing Officer through AIR, can be reason enough for holding the belief that income has escaped assessment. She has relied upon the decisions in the cases of CIT Vs Nova Promoters Finlease Pvt Ltd [(2012)342 ITR 169] but then none of the questions before Hon ble High Court had anything to do with reopening of assessment and this decision cannot, therefore, be taken as an authority on the legal issue which did not eve ..... X X X X Extracts X X X X X X X X Extracts X X X X
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