Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2022 (11) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (11) TMI 66 - AT - Income TaxRevision u/s 263 by CIT - AR submitted that the assessee has furnished the details required by the Ld. AO with respect to cash deposits in response to the notice u/s.142(1) - HELD THAT:- Confirmation letters from the assessee’s Mother-in law and from her mother’s sister who has gifted aggregating Rs.15.25 lakhs to the assessee out of their income earned from the agricultural activities and savings. As seen from the paper book the assessee’s husband Mr. Akula Satyanarayana has also gifted Rs. 16 lakhs which is also substantiated from the sources available from his personal return of income and savings. AO after considering all these evidences has passed the assessment order accepting the income returned by the assessee. We find that there was a specific question raised in Notice u/s 142(1) and detailed reply submitted by the assessee during the assessment proceedings. CIT has subjected the assessment order to revision proceedings on the ground that the AO has passed the assessment order without making any further enquiry and concluded that in the absence of any specific enquiry made by the AO / recording reasons for accepting the assessee’s submissions without any appropriate evidence shall be considered as erroneous or prejudicial to the interests of the Revenue - It is a settled principle that when the assessee has produced appropriate evidence before the AO and where the AO has not recorded the reasons for accepting the explanation of the assessee cannot render the order of the Ld. AO prejudicial to the interests of the Revenue. AO accepting the explanation of the assessee cannot be faulted merely because it could have been lawful to make more detailed inquiries or because he did not write specific reasons of accepting the explanation cannot be a reason to invoke the powers u/s. 263 - we hereby vacate the impugned revision order and restore the order of the Ld. AO. Appeal of the assessee is allowed.
|