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2022 (7) TMI 1352 - HC - Income TaxRevision u/s 263 by CIT - Bogus purchases u/s 69C - AO Estimates the addition at 3% of the bogus purchase - HELD THAT:- It would be relevant to note that when the assessing officer gave an opportunity to the assessee to explain the transaction, the assessee did not produce any document, but stated that 2% of the purported bogus purchase may be added to the total income. Thus it would mean that the assessee had accepted the allegations against them and precisely for such reason they offered that 2% of the bogus purchase may be added to the total income. If such was the factual position in the case on hand then it is incumbent upon the AO to inquire into the matter and take the proceedings to the logical end. Having not done so, PCIT was fully justified in exercising jurisdiction u/s 263 of the Act. Thus, we are of the view that Tribunal erroneously interfered with the order passed by the PCIT. Appeals filed by the revenue are allowed and the order passed by the Tribunal is set aside.
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