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2021 (10) TMI 612 - Income Tax
Revision u/s 263 by CIT - AO had accepted the surrendered income of the assessee without conducting any inquiry regarding their source - survey u/s 133A - HELD THAT:- What transpires from a bare reading of the statement of the assessee is that he had merely made a surrender over and above his normal income for the year. Nothing more can be read into the statement more particularly to the effect, as canvassed by assessee, that the surrender specifically was stated to be on account of his business or profession - For the sake of arguments, even if it is accepted so, the assessee cannot derive any benefit from a mere oral submission/statement made by him as the same is not sufficient to explain the source of advance. Therefore, this contention for the assessee is also rejected.
Assessee that the assessee had paid advance taxes on the surrendered income at the normal rate is also of no relevance, in our view, since merely paying taxes at the normal rates on a particular income will not determine its character as being from explained sources.
We are in agreement with the Ld. Pr. CIT that the AO had accepted the surrendered income of the assessee as being from the business or profession without making any enquiries regarding the same despite the fact that the documents/material found during search did not reveal the nature of the income at all and no explanation was offered by the assessee during assessment proceedings, nor in the statement recorded during search. Even before the Ld. Pr. CIT during revisionary proceedings when asked to explain the source the assessee, we find, was unable to prove the source as being business and profession - the findings of the CIT that the order passed by the AO in the light of the above facts and circumstances was erroneous and prejudicial to the interest of the Revenue, we hold is correct. The order of the Ld. Pr. CIT passed u/ s 263 of the Act is, therefore, upheld - Appeal of the assessee is dismissed.