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2018 (5) TMI 2109 - AT - Income TaxRevision u/s 263 by CIT - unexplained cash deposits - As per CIT AO not made addition of cash deposits in IDBI Bank and in Axis Bank and not made any enquiry regarding acquisition of shares - case was reopened u/s.147 and assessment was made under section 143(3) read with section 147 - HELD THAT:- We find that the assessee has disclosed bank account with IDBI in her balance sheet filed along with return of income, and same are claimed as cash sales, which have been accepted by the AO after making enquiry, therefore, same cannot be treated as undisclosed. Similarly, with regard to investment in shares, we find that Pr.CIT has not pointed out that which shares are held by the assessee - in consequent to proceeding under section 263, an assessment order was passed wherein the AO has not made any addition on account of investment in shares but made some other deposits which are still not clear. Thus, we find that the AO has made enquiry and taken a plausible view after application of mind. The order passed by the AO, in our opinion, shall be deemed to be erroneous in so far as it prejudicial to the interest of the Revenue, if the Pr.CIT would have specifically pointed out that which of inquiries or verification should have been carried out by the AO in this regard and the AO failed to carry out those inquiries and verification as desired by the Pr. Commissioner of Income-tax. Since the Pr.CIT has not suggested the basis of inquiry or verification to be carried out by the AO, the order passed by the AO cannot be deemed to be erroneous in so as far as it is prejudicial to the interest of the Revenue. AO has considered cash deposits as unexplained and considered the same in the case of Shri Ankit V. Parekh and made addition on this account by estimating profit @ 8%. It may also be noted that assessment was reopened for verification of these very deposits, therefore, it was incumbent on the AO to make such enquiry in respect of these issues. In view of these facts and circumstances, we find that the AO has made due enquiries. Since we find that the AO had made enquiries regarding cash deposits in bank account and taken a view and considered for addition and accepted the version of the assessee that bank account with IDBI was disclosed and not made any addition on this treating it as disclosed and on shares as no investment in shares was found to have been made by the assessee. Thus, the view taken by the AO was plausible view, which cannot be disturbed by the ld. Commissioner of Income-tax - Decided in favour of assessee.
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