Reassessment based on non-filing of ITR and Information of Cash Transaction in Bank Account is valid: ITAT upholds Reassessment Order [Read Order]

The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has upheld the reassessment under Section 144/147 of Income Tax Act 1961 holding that the reassessment based on non-filing of Income Tax Returns (ITR) and information of cash transaction in the bank account was valid.

The assessee, Avinash Chaudhary has filed appeal holding that having regard to the facts and circumstances of the case, CIT(A) had erred in law and on facts in confirming the action of AO in framing the impugned reassessment order under Section 147/144 of the Income Tax Act and that too without assuming jurisdiction as per law and without complying with the mandatory conditions under Section 147 to 151 of the Income Tax Act as envisaged under the Income Tax Act, 1961.

It has also been contended that the First Appellate Authority had erred in confirming the action of the AO in framing the impugned reassessment order which was apparently bad in law and not sustainable.

Kanv Bali, on behalf of the revenue submitted that the CIT(A) had categorically noted that the case laws relied upon the assessee was not applicable to the facts of the present case.

The two-member Bench of G.S. Pannu, (President) and Chandra Mohan Garg, (Judicial Member) observed that  the reason to believe was on the basis of information regarding certain cash transactions in the bank account of assessee and the assessee did not file any return of income and for the reason assessee did not file return of income for AY 2009-10. The Bench was unable to see any valid reason to interfere with the findings recorded by the CIT(A) and dismissed the appeal filed by the assessee.

To Read the full text of the Order CLICK HERE

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