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2022 (9) TMI 1037 - Income Tax
Revision u/s 263 - Reopening of assessment u/s 147 - no inquiries were conducted with regard to cash deposits in bank accounts of assessee, no inquiry made by the AO regarding land development charges, assessee has shown unsecured loans from seven persons, there are advances given for land purchase but no confirmation of any those parties are available and the assessee declared short term capital gains on sale of three properties in earlier years, the short term capital gains work out to approximately as stamp duty on purchases not taken into account in the computation of income - HELD THAT:- No reply to the show cause notice was filed by the assessee. We find that Ld PCIT passed the impugned order after detailed discussion and on clearly holding that it was the duty of the AO to investigate the fact in the return of assessee, when circumstances demand to make such inquiries. Thus, in absence of proper inquiry, the assessment order passed by AO is erroneous and prejudicial to the interest of revenue. We find that in absence of proper investigation of the issues the order passed by AO in erroneous, the Revenue suffered loss of due tax. Thus, the assessment order is prejudicial to the interest of Revenue as well.
The order passed by the AO is not only erroneous but also in so far as prejudicial to the interest of revenue. Before us, the present appeal was filed on 04.06.2018, no document till date filed by the assessee. Any material or evidence or written submission, we do not find any reason to deviate from the finding of Ld. PCIT, which we affirm. In the result, appeal of the assessee is dismissed.