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2019 (10) TMI 117 - AT - Income TaxRevision u/s 263 - unaccounted cash - Surveillance team found cash in possession of assessee - HELD THAT:- In this case, during the course of vehicle surveillance by the flying squad set up for election purpose in Madurai Central Assembly Constituency, a sum of ₹ 18.10 lakhs was found on 19/08/2016 in the possession of the assessee and Sri Tharagala Lakshmana Rao. When they have been asked for the source, it was submitted by the assessee that ₹ 10.10 lakhs belonging to him and the remaining balance of ₹ 8.00 belongs to Sri Tharagala Lakshmana Rao. The Surveillance team not satisfied with the explanation given by the assessee and the amounts seized from both the parties and handed over to the District Treasury, Madhurai. Subsequently, the ADIT (Inv.), Unit I & II has transferred the case to the DGIT (Inv.), AP & Telangana, who made enquiries in this case and reported that sources have been verified and found to be correct and seizure of cash is not warranted. Subsequently, case was transferred to the Assessing Officer for taking necessary action. AO selected this case manually for scrutiny after obtaining permission from the Pr.CIT. The Assessing Officer made detailed enquiries and called the assessee to explain the source and after considering the explanation, he made the addition of ₹ 7.00 lakhs and the same is brought to tax in the hands of the assessee. Therefore, in our opinion, the order passed by the AO neither erroneous nor prejudicial to the interest of the Revenue. It is further noted that as per the order passed by the Pr.CIT, the order of the Assessing Officer is void ab initio and not maintainable. If the order of the Assessing Officer is prima facie invalid, the Pr.CIT cannot exercise the powers conferred in u/sec. 263, therefore on this count also, the order passed by the Pr.CIT is not valid - Decided in favour of assessee.
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