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| The Tax Publishers2020 TaxPub(DT) 2743 (Del-Trib) INCOME TAX ACT, 1961
Section 147
Where case of the assessee was reopened on account of cash deposits in the savings bank account, however, AO had made the addition of part amount meaning thereby AO had not applied his mind and course adopted by AO was wholly unjustified in recording the incorrect facts in the reasons for reopening of the assessment, therefore, addition made in reassessment would stand deleted and need not be adjudicated on merit.
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Reassessment - Validity of reason to believe - Non application of mind by AO - Cash deposit fund in bank account of assessee
AO issued notice for reopening of case of the assessee under section 147 was for the cash deposit in the savings bank account but AO while completing the assessment under section 147 read with section 144 made the addition of the part amount meaning thereby that AO had not applied his mind while recording the reasons and reopened the assessment of assessee. He stated that this issue had already been adjudicated and decided in favour of assessee by the various orders of ITAT. Held: As per reasons of reopening case of assessee was reopened on account of cash deposits in the savings bank account, however, AO had made the addition of part amount meaning thereby AO had not applied his mind and therefore, set aside the orders of the authorities below and quash reopening of assessment. Resultantly the addition made in the reassessment order would stand deleted and need not be adjudicated on merit. Course adopted by AO was wholly unjustified in recording the incorrect facts in the reasons for reopening of the assessment.
Followed:Tajendra Kumar Ghai v. ITO 2017 TaxPub(DT) 1594 (Del-Trib)Relied:CIT v. Atlas Cycle Industries (1989) 180 ITR 319 (P&H) : 1989 TaxPub(DT) 1149 (P&H-HC)
REFERRED :
FAVOUR : In assessee's favour
A.Y. : A.y. 2011-12
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