ALLIANCE BOOKS SUPPLIERS PVT. LTD.,,COOCHBEHAR vs. ACIT, CIRCLE 2(1),, JALPAIGURI

This is an appeal preferred by the assessee against the order of the National Faceless Appeal Centre, Delhi (hereinafter referred to as the “Ld. CIT(A)”] dated 30.01.2025 for the AY 2019-20.

2.1. On legal issue the assessee has challenged the reopening of assessment based on the reasons to suspect as the learned AO failed to demonstrate any live link between the tangible material and formation of the belief that the income has escaped assessment. So far as the merit of the case is concerned, the assessee has 2.2. The facts in brief are that the assessee company has purchased bank guarantees from Central bank of India secured by FDRs which were given to Govt deptts. Later on the Sarfaesi proceedings u/s 132(2) of the Act of Sarfaesi Act, 2002 were initiated against the assessee and ultimately the bank took over the possession of the assessee’s premises under the said Act. The learned AO initiated the reassessment proceedings u/s 147 of the Act by issuing notice u/s148 of the Act on 14.03.2023, after passing the order u/s 148A(d) of the Act that income of the assessee has escaped assessment. The learned AO extracted the letter written by the assessee to assessment unit/ verification unit of income tax Department dated 25.01.2024, stating therein that the FDRs as alleged by the learned AO to have escaped assessment were given to bank as guarantee which have been mentioned by the AO. The assessee informed that asset become NPA in 2019 following which the bank invoked the guarantees and adjusted these FDRs towards outstanding demands and requested the learned AO to give one month time to collect the information and furnished reply accordingly. On page no.7. of the assessment order, the learned AO extracted the letter written by the assessee to Central Bank of India submitting to the bank that the assessee came to know from the income tax department that TDS amounting to ₹10,77,882/- had cut in the F.Y. 2019-20 for FDs amounting to ₹1,67,21,259/-. The 2.3. Having considered submissions and perusing the materials available on record, we find that the assessee’s account was declared NPA following which security/guarantee given by the assessee in the form of FDRs with interest thereon to various institutions. We note that the bank has not responded to the various requests by the assessee. In these circumstances, we are considered opinion that the ends of justice would be well served if the case is restored to the file of the learned AO and learned AO is directed to collect all these information by issuing summon to the bank to furnish all the details. Accordingly, we set aside the issue to the file of the learned AO with a direction to issue necessary summon to the bank and call for the details from the bank and assessed the income accordingly. Needless to say that only interest income on FDS is to be assessed and the