INCOME TAX ACT, 1961

Section 148

Reassessment - Validity - Reason to believe - Addition under section 68

Assessment proceedings under section 147 were initiated on the reason recorded by AO that assessee had made a cash deposit of Rs. 38 lacs, however, no return of income was filed. Thus, AO had reason to believe that income chargeable to tax had escaped assessment within the meaning of section 147. Held: Bank deposit details showed that total cash found to be deposited on various dates amounts to Rs. 28.50 lakhs. This means that AO was contradicting himself. Secondly, AO held that no return of income was filed whereas, in his order, AO himself states that assessee had furnished copy of return of income electronically. Reasons given by AO were devoid of any application of mind since not only AO assumed incorrect figure of cash deposits but also completely ignored the fact that return for the year under consideration was already filed. Thus, assumption of jurisdiction by AO by issuing notice under section 148 was bad in law.

REFERRED : Phool Chand Bajrang Lal & Anr. v. ITO & Anr. (1993) 203 ITR 456 (SC) : (1993) 69 Taxman 627 (SC) : 1993 TaxPub(DT) 1453 (SC) Sunrise Education Trust v. ITO (Exemption) (2018) 92 taxmann.com 74 (Guj) : 2018 TaxPub(DT) 1002 (Guj-HC) CIT v. Nova Promoters & Finlease (P) Ltd. (2012) 342 ITR 169 (Delhi) : (2012) 206 Taxmann 207 (Delhi) : (2012) 18 taxmann.com 217 (Delhi) : 2012 TaxPub(DT) 1558 (Del-HC) Chander Jain v. ACIT [ITA No. 745/Del/2014, ITA No. 4144/Del/2018, dt. 3-6-2019] : 2019 TaxPub(DT) 4187 (Del-Trib) Ashwani Kumar v. ITO ITA No. 129/Asr/2015, Order dated 23-2-2016

FAVOUR : In assessee's favour

A.Y. :

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