Kishan Beej Vs ITO (ITAT Rajkot)
ITAT Rajkot held that the reassessment notice under section 148 of the Income Tax Act has been issued without obtaining the approval as prescribed under amended provision of section 151 of the Act is liable to be quashed. Accordingly, appeal of assessee allowed.
Facts- As per information available with the department, the assessee has made cash deposits amounting to Rs. 21,92,000/-in its Bank Account during demonetization period. The assessee has failed to disclose details of cash deposits during demonetization in its return of income. Accordingly, proceedings u/s 147 of the Income Tax Act were initiated after recording reasons and after taking approval from the Joint Commissioner of Income Tax. The assessee did not file reply before AO, therefore AO made addition of Rs. 21,92,000/-, u/s. 69A r.w.s. 115BBE of the Income-tax Act, 1961.
CIT(A) confirmed the action of AO. Being aggrieved, the present appeal is filed.
Conclusion- It is established principle that merely because cash is deposited in bank does not lead to escapement of income. The cash deposits are duly recorded in the books of accounts and income from such deposits is duly considered at the time of filing of return of income. Therefore, reopening is conducted merely on account of reason to believe, as against escapement of income with concrete information on hand. The AO has failed to establish with concrete information that there is escapement of income.
