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TMI Blog2023 (6) TMI 728X X X X Extracts X X X X X X X X Extracts X X X X ..... er passed by the ld.CIT(A) is set aside and the assessment order passed under section 147 of the Act quashed. Decided in favour of assessee. - ITA No. 452/Ahd/2019 - - - Dated:- 14-6-2023 - Smt. Annapurna Gupta, Accountant Member For the Assessee : Shri Dinesh Dalsanghbhai Choudhry, AR For the Revenue : Shri Sanjay Kumar, Sr.DR ORDER The present appeal has been filed by the assessee against order passed by the Commissioner of Income Tax(Appeals)-4, Ahmedabad (in short referred to as ld.CIT(A)) under section 250(6) of the Income Tax Act, 1961 ( the Act for short), dated 07.01.2019 pertaining to Asst. Year 2010-11. 2. Brief facts relating to the case is that, it had come to the notice of the AO through AIR informati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ition by the AO under section 68 of the Act to the extent of Rs. 2,38,000/- 4. Dealing with the first issue, as has been pressed for adjudication by the ld.counsel for the assessee regarding assessment framed under section 147 of the Act, before me, the ld.counsel for the assessee contended that the AO has resorted to reopening of the assessment merely on the basis of the information received by the AO from AIR statement that the assessee has deposited cash to the tune of Rs. 11,21,000/-. He submitted that merely on the basis of this information alone, the AO formed belief of escapement of income for assumption of jurisdiction to reopen the assessment of the assessee under section 147 of the Act. The AO has reopened the case of the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on so as to demonstrate the source of the impugned cash deposits in the bank, which according to the AO was income escaped from the assessment so as to attract initiation of proceedings under section 147 of the Act. I also find that the issue on hand is similar to the issue raised in the case of Bir Bahadur Singh Sijwali v. I.T.O. (supra) where the Tribunal has quashed the reassessment order holding that in the absence of material to indicate that income has escaped the assessment, the assessment framed merely on the basis an information of cash deposit, was not tenable in law. The relevant part of the order reads as under: 8. Let us, in the light of this legal position, revert to the facts of the case before us. All that the reasons r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essment 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. . . 8. In the light of the above, I hold the assumption of jurisdiction by the AO to reopen the case of the assessee merely on the basis in formation of cash deposit in bank was not in accordance with law, and therefore, the impugned assessment order passed by the ld.CIT(A) is set aside and the assessment order passed under section 147 of the Act quashed. 9. Since, I have quashed the reassessment order, the issue of validity of addition is mere academic, and thus not being dealt with by me. 10. In the result, the appea ..... X X X X Extracts X X X X X X X X Extracts X X X X
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