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2015 (7) TMI 869 - AT - Income TaxRevision u/s 263 by CIT(A) - amount of income covered by TDS was not offered to tax, disallowance of deprecation and unaccounted personal drawings - Held that:- In this case, there was survey during the course of accounting year itself and also on the basis of the survey, the case was selected for scrutiny. The TDS made on behalf of assessee was itself reflected in 26AS of the department and the same amount was given credit. In view of this, the Ld. CIT’s presumption that this amount of income covered by TDS was not offered to tax and assessee’s concealed income cannot be accepted. With reference to the depreciation claimed of ₹ 5,698/- it was the contention that assessee purchased a scooter and the same was being used in the business. In the event the asset is not figuring in assessee’s Balance sheet or accounts schedules, one can doubt the claim of depreciation. Assessee is doing small business of bill discounting and use of scooter by assessee in the proprietary concern business cannot be doubted. Personal drawings at ₹ 20,000/- per month, the same was also found debited in the personal account. In view of the above, considering the fact that AO has completed the assessment u/s. 143(3) after issuing the show cause notice dt. 15-02-2013 u/s. 142(1) calling various details under 11 heads including confirmation of loans and advances in respect of cheques discounted, source of advances made in the finance business etc. These indicate that all aspects have been examined by the AO. Therefore, the CIT’s observation that AO has not examined these issues does not have any basis. Moreover, when assessee has pointed out the same before the CIT in the proceedings u/s. 263, it is incumbent upon the CIT to examine the contentions and give findings rather than setting aside the assessment, which is already subject matter of appeal before CIT(A) on other issues. As can been seen from the notice issued and the assessment order by AO do indicate that he has applied his mind to the issues. If there was an enquiry, even if it is inadequate that would not by itself give occasion to the CIT to pass order u/s. 263. Respectfully following the principles laid down Spectra Shares and Scrips Pvt. Ltd., Vs. CIT [2013 (6) TMI 173 - ANDHRA PRADESH HIGH COURT ] proper case has not been made out by the Ld. CIT in exercising jurisdiction u/s. 263. Not only that considering the explanation given by assessee, he should have dropped proceedings rather than directing the AO to make unnecessary enquiries which are not warranted in this case. - Decided in favour of assessee.
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