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TMI Blog2023 (4) TMI 886X X X X Extracts X X X X X X X X Extracts X X X X ..... ing mind to the information and without any further verification from the bank prosecute to record he had reason to believe that income has escaped assessment for A.Y. 2010-11. As decided in Bir Bahdur Singh Sijwali [ 2015 (2) TMI 60 - ITAT DELHI] we are inclined to hold that mere AIR information of cash deposit without any other information and verification or examination by the AO the AO is not entitle to assume valid jurisdiction to initiate reassessment proceedings u/s. 147 of the Act and issue notice u/s. 148 of the Act. Decided in favour of assessee. - ITA No. 8557/Del/2019 - - - Dated:- 31-3-2023 - SHRI CHANDRA MOHAN GARG , JUDICIAL MEMBER For the Assessee : Shri Jitender Wadwa , CA For the Revenue : Shri Om Praka ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ircumstances of the case. 3. Apropos ground no. 1 2, the learned assessee representative (AR) submitted that the AO has proceeded to initiate reassessment proceedings u/s. 147 of the I.T Act 1961 (for short the Act) and issue notice u/s. 148 of the Act by recording reasons on 16.02.2017 without application of mind and while noting in corrects and figures therefore the initiation of reassessment proceedings and all consequent orders may kindly be quashed. The learned AR submitted that the Assessing Officer noted that the bank account belong to assessee and the assessee deposited Rs. 15,50,200/- cash to his bank account whereas the said bank account was jointly owned by the assessee and Ms. Bhavana and the total deposits on said bank a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r was issued on 19.07.2016 . As such, I have reason to believe that deposited cash was made by undisclosed sources and income of Rs. 15,50,200/- is escaped to tax. If, it is approved, the notice u/s 148 may be issued. 6. In view of above, I clearly noted that there was AIR information available with the AO in the form tangible material and thereafter the AO proceeded to initiate reassessment proceedings and to issue notice u/s. 148 of the Act to the assessee. From the reassessment order dated 26.12.2017 it is clearly discernable that the assessee did not appear before the Assessing Officer and did not raised any legal objection against initiation of reassessment proceedings and issuance of notice u/s. 148 of the Act, and the AO had to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bothered to obtain copy of bank account from the said branch of bank situated at Shastri Nagar Ghaziabad and he directly jumped to record that he had reason to believe that the deposited cash was made by under disclosed sources. This above analysis of reasons recorded by the AO clearly shows that except AIR information there was nothing else in the hands of AO at the time of initiating reassessment proceedings and the AO without applying mind to the information and without any further verification from the bank prosecute to record he had reason to believe that income has escaped assessment for A.Y. 2010-11. In view of proposition rendered by ITAT Delhi in the case Bir Bahdur Singh Sijwali vs ITO (supra) I am inclined to hold that mere AIR i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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