Case Law Details
Manveer Singh Vs ITO (ITAT Delhi)
In the recent case of Manveer Singh Vs ITO, the Income Tax Appellate Tribunal (ITAT) in Delhi ruled that, before issuing a reassessment notice under Section 148 of the Income Tax Act for alleged cash deposits based on AIR information, it is essential to obtain a bank statement.
The case hinged on a reassessment order issued based on the Annual Information Report (AIR) data, without obtaining the appellant’s bank statement. Manveer Singh challenged this order, arguing that the initiation of reassessment proceedings was illegal and bad in law due to lack of valid reasons and tangible reliable material.
The ITAT Delhi bench agreed with the appellant’s argument. It highlighted that the Assessing Officer (AO) made the addition based on the AIR information of Cash Deposit without obtaining and examining the bank statement. The tribunal emphasised that, as a part of best judgement assessment, the revenue authorities are expected to obtain bank statements before issuing reassessment notices for Cash deposits under Section 148 and completing the assessment proceedings under Section 144 of the Act.
FULL TEXT OF THE ORDER OF ITAT DELHI
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