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2017 (2) TMI 443 - AT - Income TaxRevision u/s 263 - non establish the nexus between cash deposits and business receipts - Held that:- Since AO has referred to only para 3 of the reply, therefore, it is evident that he has only considered the discrepancy regarding gross receipts but did not carry out any inquiry in regard to the nexus between business receipts and cash deposits which was the specific direction of the Tribunal. Whether there was application of mind or not is to be examined having regard to the fact that how a person abreast of the nuisances of law would proceed in the given circumstances. This is a case of not only inadequate enquiry but complete lack of enquiry. The order was also prejudicial to the interest of Revenue because in the absence of assessee succeeding to establish the nexus between cash deposits and business receipts, entire deposits were to be added. We, therefore, are in agreement with the ld. Commissioner that the assessment order was erroneous in so far as it was prejudicial to the interests of revenue. Accordingly, we decline to interfere with the order of ld. Commissioner passed u/s 263 of the Act. - Decided against assessee
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