INCOME TAX ACT, 1961

Section 147

Reassessment - Eligibility of reasons to believe - Assessee did not comply with the notice issued by AO -

On the basis of AIR information, it was found that assessee had made cash deposit in his bank account maintained with a Bank therefore, notice under section 148 was issued. Assessee did not file any return of income and did not attend the notice for reopening. Consequently, show cause notice was issued to tax the above sum as income of the assessee. Assessee did not comply with the same and therefore, AO passed an assessment order under section 144. AO further obtained the bank statement under section 133(6) from bank itself. Accordingly, addition was made and the income of assessee was assessed under section 144. Held: There was no infirmity in action under section 148 wherein, there was a requisite information and AO had applied his mind and found that there was reason to believe for the reopening of assessment as according to AIR information assessee had deposited a sum in his bank account with the Bank. There was no infirmity in the reopening of the assessment. Accordingly, notice issued by AO under section 148 was quashed.

REFERRED :

FAVOUR : Against the assessee.

A.Y. : 2011-12

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