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2022 (8) TMI 1312 - AT - Income TaxRevision u/s 263 - unexplained cash deposits and cash credits - assessee‘s return was selected for verification of “Large increase in capital during the year" - HELD THAT:- We are not, we may clarify, thereby suggesting an addition for a higher sum, but only highlighting the issues that arise for determination and consideration. It is in view of these difficulties that the law deems the sum/asset unexplained as its source as income for the current year, which legal fiction, unless rebutted on facts, is to be adopted, taking it to its logical end (CIT vs. Vadilal Lallubhai [1972 (8) TMI 134 - SUPREME COURT] - Ignoring the special provisions which expressly apply in the facts of the case, or at least prima facie so, i.e., for the excess stock of Rs. 118 lacs, without anything more, would surely make the assessment order erroneous and prejudicial to the interests of the Revenue. Reference in this regard be made to the decision in M.B. Abdulla [1990 (3) TMI 1 - SUPREME COURT] Further, the objection by the ld. CIT-DR before us, i.e., the survey cases, in terms of Board Instruction, necessarily require being subject to a comprehensive scrutiny, cannot be countenanced as, even so, notice u/s. 143(2) issued in the instant case is, as a matter of fact, for limited scrutiny. We, accordingly, uphold the revision under reference. The AO shall, in the set aside proceedings, adjudicate on this aspect of the matter after allowing the assessee a reasonable opportunity of being heard, in accordance with law and by issuing definite findings of fact. As explained in Anantharam Veerasinghaiah & Co. [1980 (4) TMI 2 - SUPREME COURT] the Tribunal has to consider, from an overall consideration of all the relevant facts and circumstances, whether the unexplained cash deposits and cash credits could be reasonably attributed to the pre-existing fund of concealed income or they were reasonably explained by reference to the concealed income earned in the relevant year. Decided against assessee.
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