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TMI Blog2018 (3) TMI 2050X X X X Extracts X X X X X X X X Extracts X X X X ..... t reached Rs. 30.75 lakhs during the relevant period. Along with his reply, the assessee had also furnished a copy of the agreement between the assessee and the purchaser of the Mango crop. The bank statement was also produced. If the Assessing Officer was not still satisfied, it was always open for him to call for further details or even for valid reason to discard the assessee's reply and reopen the assessment recording the reasons. Under no circumstances, he could have simply ignored the reply and proceeded to form a belief that income chargeable to tax has escaped assessment on the premise that his queries had remained un-replied. In plain terms, his reasons proceeded on wrong facts. His satisfaction was thus, tainted by wrong fac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the financial transactions, clearly providing the date, mode and source of such investment with supporting documents. 4. The assessee replied to such query under a communication dated 06.03.2017 pointing out that the assessee had earned agricultural income in cash which was deposited in the bank account. The assessee had also withdrawn such amount from time to time and redeposited the same which comes to Rs. 30.75 lakhs during the relevant period. Along with this letter, the assessee also produced a copy of an agreement dated 04.06.2009 for sale of his Mango produce to a dealer for a total sale consideration of Rs. 25 lakhs. This agreement recorded that an oral agreement was entered on 25.05.2009. The assessee would receive total of Rs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee's cash falls within explanation 2(b) to Section 147 of the I.T. Act, i.e. "where a return of income has been furnished by the assessee but no assessment has been made and it is noticed by the Assessing Officer that the assessee has understated the income or has claimed excessive loss, deduction, allowance or relief in the return." As mentioned above, the assessee has not fully disclosed his bank accounts and the cash deposits made in that accounts in his return of Income. I am therefore satisfied and have reason to believe that income chargeable to tax of Rs. 30,75,500/- has escaped assessment within the meaning of section 147 of the Act..." 6. The petitioner raised objections to the notice of reopening unde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed in the bank account was very large as compared to the return shown by the assessee. Therefore, a letter was issued seeking clarification and asking the assessee to furnish certain details. According to the Assessing Officer, as stated in the said reasons "the assessee had not furnished the details/explanation in this regard till date.". 9. We are conscious that in the present case, the return filed by the assessee was accepted without scrutiny. The Assessing Officer therefore not having formed any opinion on the proposed addition, the principle of change of opinion would not apply. Nevertheless, even in such a case, the Assessing Officer must have valid reason to believe that income chargeable to tax has escaped assessment. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mismatch between the returned income and cash transactions in the assessee's bank accounts, queries were raised, which remained un-replied. This is contrary to the facts on record. As noted, in reply to the notice dated 21.02.2017 issued by the Assessing Officer, the assessee had given a detailed reply on 06.03.2017. He had pointed out that he had received Rs. 25 lakhs in cash for sale of his Mango crop. Such amount was deposited in the bank account. Part of it was withdrawn and redeposited. That is how the total cash deposit in his account reached Rs. 30.75 lakhs during the relevant period. Along with his reply, the assessee had also furnished a copy of the agreement between the assessee and the purchaser of the Mango crop. The bank s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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