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2022 (10) TMI 823 - AT - Income TaxRevision u/s 263 by CIT - Addition u/s 69A - As per CIT AO did not enquire into all relevant issues involving the assessee’s foregoing deposits and business turnover whilst framing the assessment and therefore, the same attract section 263 jurisdiction - HELD THAT:- Assessment nowhere indicates such detailed inquiry by the AO which renders the impugned regular assessment as erroneous as well as prejudicial one to the interest of revenue as held in the case of Malabar Industrial Co. Ltd. [2000 (2) TMI 10 - SUPREME COURT] - All these Revenue’s arguments fail to evoke our concurrence. We make it clear that the sole issue therein is assessee’s cash deposit in bank account out of which he could only explain the recorded sales turnover - It is in this factual backdrop that the Assessing Officer had accepted the source of foregoing cash deposit to the extent of recorded sales turnover and treated the remaining amount as unexplained u/s 69A - Meaning thereby that the Assessing Officer had already assessed the assessee u/s 69A. And there is nothing more left to conclude that the foregoing unaccounted sum deserves to be added in any other head of income. Faced with this situation, we hold that the Assessing Officer took one of the two possible views in invoking section 69A of the Act whilst dealing with assessee’s cash deposit which could hardly be taken as an instance of the impugned assessment as erroneous causing prejudice to interest of revenue, simultaneously, as per their lordships landmark decision in Malabar Industrial Co. (supra). We thus reverse the PCIT’s revisional directions in issue. Assessee appeal allowed.
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