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TMI Blog2023 (2) TMI 576X X X X Extracts X X X X X X X X Extracts X X X X ..... e of cash deposits and based on the results of the inquiry, only a belief of escapementof income can be formed. Noting the fact that the actual cash deposits in the bank accounts of the assessee this amount of cash deposits, in no case, could have resulted in escapement of income at all, being well below taxable limit even if all the cash deposits were found to be in the nature of income not returned to tax by the assessee and the assessee as per facts noted by the AO had no other income, except that held by the AO in the present reassessment proceedings. Jurisdiction assumed in the present case by the AO to reopen the case of the assessee u/s 147 of the Act was without any formation of belief of escapement of which, based on incorrec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ear 2011-12. Therefore, the sources of the cash deposits are subjected to verification by the Assessing Officer. Therefore, the case was reopened by issuing notice u/s.148 of the I.T. Act, 1961 . He thereafter drew our attention to the copy of aforestated bank account of the assessee for the impugned year placed before me in page no.1 of paper book filed and pointed out that the cash deposits in the bank account were only to the tune of Rs.11,500 plus Rs.6900/- plus Rs.15,000/- thus totaling to Rs.29,900/-; that all other deposits were on account of cheque deposited therein or related to interest credited by the bank. Therefore, the fact noted by the AO of cash deposits of Rs.10.00 lakhs in the bank account of the assessee were incorrect fa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... elief of the AO of escapement of income , based on information with him.The information of cash deposit in bank can at the most lead to suspicion of income having escaped assessment, the deposits not necessarily being in the nature of income. This suspicion can lead to a belief only when further inquiry is conducted by the AO to determine the nature of cash deposits and based on the results of the inquiry, only a belief of escapementof income can be formed. Moreover, noting the fact that the actual cash deposits in the bank accounts of the assessee amounted to Rs.29,900/-, this amount of cash deposits, in no case, could have resulted in escapement of income at all, being well below taxable limit even if all the cash deposits were found to b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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