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2015 (3) TMI 1190 - AT - Income TaxValidity of order passed u/s 263 - agricultural income undisclosed - Held that:- It was noted by CIT from the assessment records so far as agricultural income is concerned that during the course of assessment proceedings document to substantiate the agricultural return like khasra / Girdawari document were neither called for by the assessing officer nor filed by the assessee. Before the CIT the assessee has taken a plea that his father owns 15 acres of agricultural land and his brother has carried out cultivation and he has received sum of ₹ 88,185/- as gift by his father on account of his share in agriculture income. Agriculture income earned by the father of the assessee cannot be the agriculture income of the assessee. We ask the Ld. A.R in the open court whether any query has been raised by the assessing officer about the earning of the agricultural income or whether you have filed any reply in this regard which may prove that the issue regarding the earning of the agricultural income was examined by the assessing officer. The Ld. A.R was fair enough to concede that the assessing officer has not raised any query in this regard. This itself prove that this is a case of no inquiry. Cash in hand, cash deposited in bank and investment in immovable assets - Held that:- The assessee does not have any leg to stand as in the case of the assessee, the assessing officer has not made inquiries on most of the issues as pointed out by us and even the Ld. A.R also agreed that no questionnaire issued or query was raised by the assessing officer during the course of assessment in respect of these issues. This is not a case of inadequacy of inquiry but a case of no inquiry being conducted by the assessing officer where it was incumbent upon the assessing officer to examine and verify the facts for determining the correct income of the assessee in each of the assessment years. It is not a case where the A.O has accepted the income of the assessee by taking one of the possible views. It is also not a case of inadequate inquiry on all the issues but a case where no inquiry has been conducted by the A.O in three issues out of the five issues on which show cause notice was issued by the CIT u/s 263. Non application of mind on the part of the Assessing Officer and accepting the income of the assessee without making an enquiry will tantamount that the order is erroneous and prejudicial to the interest of the Revenue. In view of aforesaid discussion, the order passed u/s 263 has to be upheld as, in our opinion, it has passed through test of fulfilment of both the conditions by the CIT that the order passed by the A.O is erroneous as well as prejudicial to the interest of the revenue. We, therefore, dismiss the ground nos. 1 to 3 by upholding the order passed u/s 263. - Decided against assessee.
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