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2022 (8) TMI 37 - AT - Income TaxRevision u/s 263 - Addition u/s 68 - unexplained cash credits - HELD THAT:- As the principle which emerges is that the phrase 'prejudicial to the interests of the revenue' has to be read in conjunction with an erroneous order passed by the Assessing Officer. Every loss of revenue as a consequence of an order of the AO cannot be treated as prejudicial to the interests of the revenue, for example, when an AO adopts one of the course permissible in law and it has resulted in loss of revenue; or where two views are possible and the AO has taken one view with which the CIT does not agree, it cannot be treated as an erroneous order prejudicial to the interests of the revenue unless the view taken by the AO is unsustainable in law, or the AO has completely omitted to make any enquiry altogether or the order demonstrates non-application of mind. In the present case of the assessee was selected through "CASS" selection for Limited Scrutiny, where the purpose of assessment was to scrutinize the substantial increase in share capital in the captioned year. During the course of assessment proceedings, AO made detailed enquiries on this issue and after consideration of time-to-time written submissions filed by the assessee and documents / evidence placed on record, AO made additions (inclusive of the cash deposits) by treating the same as unexplained cash credits. Pr. CIT initiated 263 proceedings on the ground that the AO has not made enquiries or verification which should have been made in respect of share capital introduced during the year under consideration. It is not the case of the Pr. CIT that the Ld. AO did not apply his mind to the issue on hand or he had omitted to make enquiries altogether. In the instant set of facts, the Ld. AO had made detailed enquiries and after consideration of material placed on record, made an addition - We thus find no error in the order of AO so as to justify initiation of 263 proceedings by the CIT. The Ground of appeal raised by the assessee is thus allowed.
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