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TMI Blog2023 (1) TMI 830X X X X Extracts X X X X X X X X Extracts X X X X ..... ication to reopen the case u/s 148 and for the reason we see that the requirement of application of mind is missing in the present case on the face of reasons recorded, thus the cardinal principle of taxation that all receipts are not income and all income are not taxable income applies squarely to present facts. It is a well settled law that, the reasons for the formation of the belief must have rational connection with or relevant bearing on the formation of the belief. Whereas in the absence of nexus between the prima facie inference arrived in the reasons recorded and information vis-a-vis material much less tangible, credible, cogent and relevant to form a reason to believe could not be made a basis to assume jurisdiction, hence can ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cash deposits into saving bank account of the assessee, the Ld. AO invoked the reassessment jurisdiction by issue of notice u/s 148 and eventually framed the assessment by bringing to tax the entire cash deposits of ₹47,63,510/- as unexplained investment u/s 69 coupled with net commission income after allowing 50% deduction u/s 44AD of the Act. 2.3 When matter travelled before first appellate authority [in short FAA ] in an appeal, the Ld. CIT(A) reiterating the findings confirmed the action of Ld. AO. 2.4 Aggrieved by the actions of both the tax authorities below [in short TAB ] the assessee is in appeal before the Tribunal. 3. We state that, grounds raised in the appeal memo are inconsonance with rule 8 of the Income Tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... us it amply demonstrates lack of enquiry by the Ld. AO before exercising the jurisdiction to reopen the case u/s 148 of the Act. 5.3 Further the information relating to cash deposit into saving bank received through AIR was there on record during the unexpired period of regular assessment and hence such information cannot is pofacto part-take the characteristic of fresh material giving rise to form a basis for forming an opinion in assuming jurisdiction u/s 148 of the Act. Conversely any information coming to light upon the expiry of period within which regular assessment can be triggered by issue of notice u/s 143(2), can elementarily support the invocation of reassessment jurisdiction subject to forming of belief thereon upon conclusiv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... face of reasons recorded, thus the cardinal principle of taxation that all receipts are not income and all income are not taxable income applies squarely to present facts. 8. It is a well settled law that, the reasons for the formation of the belief must have rational connection with or relevant bearing on the formation of the belief. Whereas in the absence of nexus between the prima facie inference arrived in the reasons recorded and information vis-a-vis material much less tangible, credible, cogent and relevant to form a reason to believe could not be made a basis to assume jurisdiction, hence cannot be relied upon; thus the proceedings initiated are purely based on surmises, conjectures and suspicion and therefore, the same are witho ..... X X X X Extracts X X X X X X X X Extracts X X X X
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