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TMI Blog2025 (4) TMI 1444X X X X Extracts X X X X X X X X Extracts X X X X ..... t") and relates to Assessment Year (A.Y.) 2019-20. 2. The brief facts relating to the case are that re-assessment proceedings in terms of the provisions of Sections 147 and 148 of the Act were initiated on the assessee by the AO noticing that the assessee was a non-filer of return of income and there were huge cash withdrawals from his bank account amounting to Rs. 1,13,20,000/-. Accordingly, in terms of the provisions of the Act stipulated in this regard, the assessee was first confronted with this information in the possession of the AO as per Section 148A(b) of the Act and after considering the response of the assessee to the same, the AO decided that it was a fit case for initiating re-assessment proceedings on the assessee since he fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 44B of the Act when the notice u/s 148 was issued and order u/s 148A(d) was passed by JAO[ITO WARD 3(1)(4) Vadodara] and not Faceless Assessing Officer as required by the amended provisions and scheme of the Act. It be so held now and order passed by ld. AO be now quashed by setting aside the appellate order. 3. Without prejudice to the above grounds, the Id Commissioner of Income tax (Appeals) also further erred in law and on facts in confirming addition of Rs. 8,89,901/- when no any addition of the alleged escapement of so called income based on alleged information as per notice u/s 148A(b) regarding withdrawals of cash from bank account was not made and hence the very proceedings is bad in law. It be so held now and orders passed by ld ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lowance on an issue for which reopening was not resorted, as noted above. 6. The argument of the Ld. Counsel for the assessee before us was that reopening was resorted to by the AO on the belief of escapement of income to the tune of Rs. 1.13 crores, being cash withdrawn from its bank account, in the backdrop of the fact that no return of income was filed by the assessee, but ultimately in the assessment framed under Section 147 of the Act, no addition was made on account of the same, the AO being satisfied with the explanation of the assessee that it was a Milk Producers Cooperative Society which received income from the sale of milk by way of cheques and withdrew the amount in cash for payment to the milk producers. However, the AO, he p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n confronted to the assessee in terms of the provisions of Section 148A(b) of the Act, placed at Paper Book page No. 3 to 7. Drawing our attention to Para 5 to 6 of the said order, Ld. Counsel for the assessee pointed out that the AO categorically noted therein that he had information and details in his possession that the assessee had made cash withdrawals of 1.13 crores from his bank account and was a non-filer of return and since the nature and source of fund to make such withdrawals remain unexplained, therefore, the source of fund of Rs. 1.13 crores to make cash withdrawals from the bank account of the assessee represented undisclosed/unexplained income of the assessee for A.Y. 2019-20. Para 6 of the order was pointed out to us showing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er law for claiming deduction in terms of the provisions of Section 80P of the Act. 11. Thus, from the above documents Ld. Counsel for the assessee pointed out that the information with the AO for the escapement of the income of the assessee of Rs. 1.13 Crs of cash withdrawals from bank, did not ultimately culminate in addition being made in the hands of the assessee; that therefore, the jurisdiction of the AO to frame assessment under Section 147 of the Act was lost and no further addition on any other issue could be made by the AO. Support for this proposition of law was drawn from various decision which are noted to above. 12. Ld. D.R. on the other hand, vehemently opposed the contention of the Ld. Counsel for the assessee, though he w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ngs of the Hon'ble Rajasthan High court in the case of CIT vs Shri Ram Singh 306 ITR 343: "29. To clarify it further, or to put it in other words, in our opinion, if in the course of proceedings under section 147, the AO were to come to conclusion, that any income chargeable to tax, Which, according to his "reason to believe", had escaped assessment for any assessment year, did not escape assessment, then, the mere fact, that the AO entertained a reason to believe, albeit even a genuine reason to believe, would not continue to vest him with the jurisdiction, to subject to tax, any other income, chargeable to tax, which the AO may find to have escaped assessment, and which may come to his notice subsequently, in the course of proceedings u ..... X X X X Extracts X X X X X X X X Extracts X X X X
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