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2016 (5) TMI 98 - AT - Income TaxRevision u/s 263 - unexplained advance from Shri Ram Singh and deposit of the cash in the bank account - Held that:- Assessing Officer asked for the explanation of the assessee at assessment stage with regard to cash deposited in the bank account. The assessee furnished copies of the bank accounts for perusal of the Assessing Officer along with cash book in which cash was shown to have been received as advance against property from Shri Ram Singh. The agreement in question was also produced before the Assessing Officer for his perusal and the Assessing Officer recorded the statement of Shri Ram Singh in which Shri Ram Singh has confirmed entering into agreement to sell with the assessee and giving advance of ₹ 6,50,000. In his statement, he has also explained source of his income. The order-sheet recorded by the Assessing Officer at assessment stage clearly shows that the Assessing Officer asked the assessee to produce Shri Ram Singh for examination and the Assessing Officer recorded further in the order-sheet that the statement of Shri Ram Singh was recorded. It is not in dispute that the statement of Shri Ram Singh has initials of the Assessing Officer even as per the findings of the Commissioner of Income-tax. Therefore, there is no question of doubting the statement of Shri Ram Singh recorded at the assessment stage. These facts, therefore, clearly prove that the Assessing Officer examined this issue in detail at the assessment stage and accepted the explanation of the assessee with regard to advance from Shri Ram Singh and deposit of the cash in the bank account. The Assessing Officer, therefore, made proper enquiries at the assessment stage Assessing Officer passed the order in accordance with law and if the Commissioner of Income-tax did not accept the view of the Assessing Officer and wanted to take a different view, would not give rise to any occasion to proceed under section 263 of the Act merely on audit object. We, accordingly, set aside the order under section 263 of the Income-tax Act and quash the same. - Decided in favour of assessee
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