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2022 (6) TMI 686 - AT - Income TaxRevision u/s 263 by CIT - unexplained cash deposits were made out of the sale proceeds of cotton seed cake - HELD THAT:- Parliament had conferred the power of revision on the Commissioner of Income Tax u/s 263 of the Act in case the assessment order passed is erroneous and prejudicial to the interests of revenue. In order to invoke the power of revision, the above two conditions are required to be satisfied cumulatively. References in this regard can be made to the decision of Malabar Industrial Co. Ltd. [2000 (2) TMI 10 - SUPREME COURT] and in the case of CIT vs. Max India Ltd. [2007 (11) TMI 12 - SUPREME COURT] - The error in the assessment order should be one that it is not debatable or plausible view. In a case where the Assessing Officer examined the claim took one of the plausible views, the assessment order cannot be termed as an “erroneous”. Applying the above principles to the facts of the present case, no doubt in the present case the assessment was selected for limited scrutiny under CASS for the purpose of verification of cash deposits in Savings Bank Account are more than turnover. From perusal of the original assessment order, it would clearly indicate that the Assessing Officer merely accepted the explanation of the assessee that unexplained cash deposits were made out of the sale proceeds of cotton seed cake without examining any evidence. Similarly, the Assessing Officer estimated the gross receipts from the agricultural produce without examining the reasonableness of the yield of cotton per hectare. Thus, it is clear that the assessment order was passed by the Assessing Officer suffered from lack of necessary enquiries and the Explanation 2 to provisions of section 263 of the Act is squarely applicable to the present case. Hence, we uphold the order of revision passed by the ld. PCIT u/s 263 - Decided against assessee.
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