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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 ..... ar [for short "AY"] 2011-12. 2. Tersely stated that facts borne out of case records; 2.1 The assessee is a resident individual engaged in Multi-Level-Marketing on agency basis, had filed his return of income [in short "ITR"] for AY 2011-12 declaring total income of Rs.3,76,966/- under presumptive taxation u/s 44AD of the Act. 2.2 On the basis of annual information return [in short "AIR"] observing the 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 Rs.47,63,510/- as unexplained investment u/s 69 coupled with net commission income after allowing 50% deduction u/s 44AD of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ved through AIR stating cash deposits of Rs.47,63,510/- in saving bank account, has compositely formed a basis for invocation of reassessment jurisdiction u/s 148. 5.2 Per contra, on the face of records it glaringly evident that, the Ld. AO himself at para 3 placed at page 2 of his order categorically noted his finding to the effect of assessee having filed his ITR on 10/10/2011, thus 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... capital sources of cash deposits available to the assessee and unless and until it is brought out in the reasons to believe as to how the cash deposits represent income or investment from undisclosed sources same cannot give justification to reopen the case u/s 148 of the Act, 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. 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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