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TMI Blog2024 (7) TMI 209X X X X Extracts X X X X X X X X Extracts X X X X ..... nd legal error in affirming the addition disregarding the certificate issued by the bank, which explicitly states that the appellant does not have any account with in J k Bank, Lassipora by way of wrongly mentioned the fact that the account belongs to the assessee. Thus, the said findings of the CIT (Appeals) is factually incorrect in the light of the bank certificates being filed as an additional evidence before the CIT(A) by the assessee. Reasons recorded are bad in law as the reopening has been made based on incorrect facts. It is a settled law that the reopening cannot be made based on wrong assumption of facts following AIR information and accordingly, the assessment made on the basis of wrong assumption of facts is liable to be quashe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... red in confirming the addition of Rs. 48801396/- made by the AO on account of deposits in two bank accounts without any application of mind and without considering the submissions of the assessee and the certificate of the J K Bank. 5. That the Ld. CIT(A) has erred in confirming the addition of Rs. 18807964/- in HDFC Bank account without appreciating that the assessee was engaged in the business activity of collection of milk from farmers and supplying it to shopkeepers on commission basis and all the deposits represent receipts from milk collection. 6. That without prejudice to the aforesaid, the Ld. CIT(A) has erred in not appreciating that a credits in I1DFC bank are in respect of sales and as such, the addition has to be restricted to p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mitted a certificate from J K Bank mentioning the fact that Account no. 07248620000329 does not belong to the appellant. He filed the copy of certificate on record (APB, Pg. 12). However, the CIT(A) erroneously stated that the assessee submitted a request for additional evidence, mentioning that the appellant is engaged in the sale and purchase of land. This assertion by the CIT(A) contradicts the facts and circumstances of the case as the additional evidence submitted by the assessee solely pertained to the certificate obtained from J K Bank. The Ld. AR argued that the AIR information uploaded by the reporting entity u/s 285BA regarding deposits of Rs. 2.99.93.4317- in J K bank account no 07248620000329 does not pertain to the assessee. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... k Bank, Lassipora by way of wrongly mentioned the fact that the account no. 07248620000329 belongs to the assessee. Thus, the said findings of the CIT (Appeals) is factually incorrect in the light of the bank certificates being filed as an additional evidence before the CIT(A) by the assessee. (APB, Pg. 12). 8. In our view, the reasons recorded are bad in law as the reopening has been made based on incorrect facts. It is a settled law that the reopening cannot be made based on wrong assumption of facts following AIR information and Accordingly, the assessment made on the basis of wrong assumption of facts is liable to be quashed. Our view gets support from the following judgement of the Tribunal: a) 2022 (5) TMI 242 - ITAT AMRITSAR Other C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ents as cited supra , the assessment as framed by issuance of notice u/s 148 for incorrect belief is deserves to be quashed. - Decided in favour of assessee. b) [2017] 79 taxmann.com 455 (Amritsar - TribO IN THE ITAT AMRITSAR BENCH KMV Collegiate Sr. Sec. School v. ITO (Exemption), Jalandhar 26. From the above discussion, it is evident that both the reasons recorded by the AO for reopening the completed assessments of the assessee are based on factual errors, rendering the notice issued u/s. 147. finding its basis in the aforesaid reasons, to be an invalid notice, in keeping with the decision of the Hon'ble Supreme Court in 'Kelvinator of India Ltd.' (supra), as considered in 'Dr. Ajit Gunta' (supra). Consequently, all p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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