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2023 (5) TMI 38 - AT - Income TaxRevision u/s 263 by CIT - low income from liquor business - case was selected for complete scrutiny under CASS to verify the “low income from TCS receipts-liquor” - As per CIT AO ought to have verified the books, purchase bills and sale bills etc., since the case was selected for complete scrutiny and the reason was low income - HED THAT:- Since in the instant case, the assessee has furnished the requisite details to substantiate its low income from liquor business and the Assessing Officer, after considering the details, has taken a possible view, therefore, the learned PCIT, in our opinion, is not justified in invoking the jurisdiction u/s 263. PCIT are adopting profit rate of 3% to 5% profit from liquor trade only when the books are rejected. However, in the instant case, the books of account, which are duly audited and furnished before the Assessing Officer, were never rejected and therefore, the observation of the PCIT that the Assessing Officer should have adopted profit rate of 3% to 5% from liquor trade cannot be sustained. We, therefore, hold that the PCIT is not justified in invoking jurisdiction u/s 263 on the first issue i.e. low income from liquor trade. PCIT held the order to be erroneous and prejudicial to the interest of the Revenue for which he has invoked the provisions of section 263 i.e. non-verification of introduction of capital and withdrawal - Since AO in the instant case has not called for any information on the issue of introduction of capital and withdrawal and since there is nothing on record to show that the assessee has explained the source of introduction of such capital, therefore, the order of the AO on this issue has become erroneous and prejudicial to the interest of the Revenue and therefore, the PCIT, in our opinion, was fully justified in invoking revisional power u/s 263 of the I.T. Act. We, therefore, uphold the order of the PCIT invoking the jurisdiction u/s 263 of the Act on the second issue i.e. introduction of capital and withdrawal.
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