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2023 (4) TMI 95 - AT - Income TaxRevision u/s 263 - Unexplained cash deposits - as per CIT AO considering figures of cash deposited in the bank account of the assessee short by Rs. 1,00,000/- - AO accepting the genuineness of the cash deposits from one of the parties on the basis of certain documents filed, which as per the Ld. PCIT were found to be missing in the case records - HELD THAT:- CIT has not even cared to consider this contention/explanation of the assessee. He has simply taken all the material on record, and sent it to the AO for verification without himself applying his mind to it. We agree with assessee that this act of the ld. Pr. CIT goes against the very spirit of section 263 itself, which in very clear term states that in revisionary proceedings, the assessee is to be confronted with the error noted in the assessment order, given an opportunity of hearing, his contentions need to be considered and inquired into and only then, CIT has to arrive at his finding of error after considering all contentions and evidences furnished by the assessee. PCIT has given no finding as to why the assessment order was in error on the issue of cash deposit short considered by the AO. And with respect to the error relating to the issue of acceptance of source of cash deposit by the AO he has merely reiterated his earlier observation that no evidences proving the source as noted by the AO were found in the case record. Ignoring the explanation of the assessee, we find, the Ld. PCIT has simply reiterated his reason for assuming jurisdiction to revise the order of the AO, while finding the assessment order erroneous and causing prejudice to the Revenue. Merely because documents, noted by the AO to be produced by the creditor of source of cash deposit of Rs. 98.09 lacs in response to summons issued to him u/s. 131 were not found in the case records, that cannot be the reason for holding the assessment order to be in error for accepting the genuineness of the source of cash deposit. The fact of issuance of summons by the AO is not doubted or disputed by the Ld. PCIT. AO has also categorically noted relevant documents submitted by the depositor proving genuineness of the source of cash deposit. The Ld. PCIT has not found those documents in the case file. This cannot lead to the inference that no inquiry was conducted by the AO, as held by the Ld. PCIT. - Decided in favour of assessee.
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