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2023 (9) TMI 775 - ITAT CHENNAI
Revision u/s. 263 - As per CIT AO has wrongly estimated profit rate @ 8% on the differential cash deposit - HELD THAT:- AO while framing assessment has categorically noted that there is a difference between the cash sales and cash deposits into the bank and the explanation of the assessee before AO was that the difference between cash sales and cash deposits into his bank account was due to cash deposited out of collection from debtors being credit sales being executed, other collections etc.
Hence, it was stated that the difference between cash deposit in the bank account is on account of cash sales or recovery from earlier year and hence, AO has taken a possible view and estimated the net profit on the differential cash deposit treating the same as sales.
AO has taken one of the possible views and hence, we find no infirmity in the assessment order and we find no error or prejudice in the order of the AO. Therefore, the order of PCIT is set aside and restore the order of the AO. Appeal filed by the assessee is allowed.