Register to get Live Demo
2023 (9) TMI 831 - ITAT AMRITSAR
Revision u/s 263 - source of cash deposited in the Bank account - undisclosed interest on savings/deposits - appellant’s case was reopened after recording reasons and obtaining necessary approval from PCIT that the assessee had deposited cash in her savings bank account maintained with the Oriental Bank of Commerce during the financial year 2010-11 and that no return had been filed for the year under consideration u/s 139(1) - HELD THAT:- In the present case, all the facts have been independently verified by the Ld. AO. Thus, there appears to be merely a change of the opinion of the Ld. Pr. CIT in observing that there was incorrect application of mind by the AO by not carrying proper enquiry in the case of the assessee, and thus, a Show-Cause Notice was issued u/s. 263 to the assessee on account of difference of opinion is bad in law.
There is a direct nexus between the transaction of sale and the cash deposited in the bank account of the assessee as the transaction of sale of land is registered on 26.04.2010 and the cash was also deposited by the assessee on the same date. AO has accepted the deal of sale of agriculture land with a conscious and independent application of mind. Under the facts and circumstances, we hold that the application of provision of section 263 of the Act, on account of difference in opinion of Pr. CIT is invalid and unwarranted.
The impugned order u/s. 263 of the Act is quashed. Decided in favour of assessee.