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TMI Blog2024 (8) TMI 122X X X X Extracts X X X X X X X X Extracts X X X X ..... ank for carrying out banking transaction on behalf of the customers, by no stretch of imagination can result into escapement of income. The reasons recorded by the Assessing Officer so as to assume the jurisdiction are therefore, contrary to the basic account accounting principles of banking industry whereby the cash is received from the customer can never be said to partake a character of cash credit by depositing the same in the bank account of the petitioner-Bank kept with other bank. In such circumstances, when there is no escapement of income, the reopening of assessment cannot be permitted merely for the purpose of verification or for fishing inquiry and the impugned notice u/s 148 of the Act is not tenable in eye of law. Assessee appeal allowed. - HONOURABLE MR. JUSTICE BHARGAV D. KARIA AND HONOURABLE MR. JUSTICE NIRAL R. MEHTA Appearance: For the Petitioner(s) No. 1 : Mr Manish J Shah (1320). For the Respondent(s) No. 1 : Mrs Kalpana k Raval (1046) For the Respondent(s) No. 2 : Served By RPAD (N). ORAL JUDGMENT (PER : HONOURABLE MR. JUSTICE BHARGAV D. KARIA) 1. Heard learned advocate Mr. Manish Shah for the petitioner and learned Senior Standing Counsel Mr. Karan Sanghani ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... received, Mr Dashrathsingh Rajput, Mr Maganlal Patel, Mr Jayantilal Parmar, Mr Prafulchandra B Naik and Gunvantrai K Vashi maintains current a/c No. 200006404127 in the name of M/s Valsad Dist Central Co-op Bank Ltd, Halar Road Branch since 30/06/2003.Customer has submitted PAN at the time of account opening. Scrutiny of the current a/c No. 200006404127 during the period from F b 2015 to July 2015 revealed that, high value cash credits aggregating to Rs 5.05 crs are seen in the current a/c no.200006404127 and the proceeds, were immediately debited from the account through cheque issuance, funds transfers and RTGS M/s Valsad Dist Central Co-op Bank. Huge cash deposits amounting to just below the threshold limit of Rs 10 lacs is seen in the above account. High value cash deposits aggregating to large amount in current account followed by immediate utilization of proceeds coupled with high volume of cash deposit is not matching with declared profile of the customer . 4. Enquiries made by the AO as sequel to information collected/ Received: It is seen that the assessee has not submitted any proper explanation regarding the huge cash deposits. 5. Findings of the AO: On verification on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e bank who are admittedly the employees of the bank and having been authorized to operate the account with the Indusind Bank, deposited the cash in the account of the petitioner-Bank for carrying out banking transactions on behalf of the customers of the petitioner-Bank. It was submitted that the respondent No.1 could not have assumed the jurisdiction to issue the impugned notice as there is no escapement of income and the reasons recorded are only based upon the assumption and presumption and borrowed satisfaction without application of mind. 11. Learned advocate Mr. Shah has referred to and relied upon Sunrise Education Trust vs. Income Tax Officer reported in [2018] 92 taxmann.com 74 (Guj) in support of his submissions wherein it is held as under: 6. Counsel for the Revenue however contended that in such return, the assessee had not disclosed the income of Rs. 33.97 lacs which the assessee-trust received in cash and deposited in a bank account. This assertion also is not borne out from the record. The assessce had from the outset been contending that the assessce's accounts are duly audited and such audited accounts are presented alongwith the return. This has been so assert ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 13. Learned advocate Mr. Sanghani therefore submitted that the assessee having alternative remedy to challenge the assessment order before CIT (A), in case, if the addition is made on the basis of the reopening, no interference should be made while exercising the extraordinary jurisdiction under Article 226 of the Constitution of India. 14. Considering the above submissions, it is not in dispute that the petitioner is a registered Cooperative Bank carrying out banking business i.e. dealing in cash of the customers. It is also apparent from the documents placed on record that the accounts of the petitioner are duly audited and the search audit report, audited balance-sheet, profit and loss account along with audit report under Section 44AB is already filed along with return of income. From the reply of the petitioner dated 15.11.2018 given during the regular course of assessment in response to the notice under section 143 (2), the petitioner has stated as under: (17) You will also appreciate that the assessee bank has incurred the expenses wholly and exclusively for the business of banking and there is no adverse remark of the statutory auditors of NABARD. As a matter of fact, all ..... X X X X Extracts X X X X X X X X Extracts X X X X
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