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2023 (10) TMI 23 - AT - Income TaxRevision u/s 263 - As per CIT AO did not verify/examine the loan creditors as there is a lack of supporting evidences and no appropriate inquiry was made - HELD THAT:- AO was not obliged to ask the Assessee to provide source of source under the pretense of proper examination of the creditworthiness of the creditor and absence of further evidence showing the source of source was not an error. In the present case, the material show that the AO has made all possible enquires acting u/s 68 with reference to all the creditors. There is nothing in record to show that discretion conferred u/s 68 was not properly exercised. Therefore, the finding of the ld. PCIT that appropriate enquires/verifications of loans have not been made by the AO w.r.t cash Creditors is legally & factually incorrect. We find that it was not the case of ld. PCIT that there was a complete/total lack of inquiry. He himself admits in the impugned order that the AO did make enquiry on the issues involved. The law is well settled that the assessment order cannot be held to be erroneous simply on the allegation of inadequate enquiry, unless there is an established case of total lack of enquiry. In this regard, we draw strength from the decisions in the cases of Sunbeam Auto Ltd. [2009 (9) TMI 633 - DELHI HIGH COURT] and Narain Singla[2015 (10) TMI 2371 - ITAT CHANDIGARH] and Chemsworth P Ltd. [2020 (9) TMI 875 - KARNATAKA HIGH COURT] all followed in Annu Agrotech. [2021 (9) TMI 856 - ITAT JAIPUR] by this bench. Assessee appeal allowed.
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