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2023 (11) TMI 585 - AT - Income TaxRevision u/s 263 - taxability of cash transactions - as per CIT AO had made addition of GP rate @ 19.40 of the total financial transactions with M/s National Shroff, who is an Angadia, therefore, there was no scope to treat the said transaction as trading turnover but the said transactions were liable to be treated as cash transactions only - PCIT held that the Assessing Officer ought to have considered the total amount as unexplained cash transactions and the aforesaid transactions amount should have been taxed u/s. 115BBEE - HELD THAT:- AO had examined this issue in detail during the original assessment proceedings and had made due inquiries and detailed analysis of the material available on record in respect of transactions which was the subject matter of revision in 263 proceedings. AO on the basis of discussion with partner of National Shroff (Angadia), concluded that the amount in question represented cash sales/out of book sales carried out by the assessee during the year under consideration. Accordingly, the AO calculated the GP rate @ 19.40% on the aforesaid cash sales. Thus AO had examined the issue in detail during the course of original assessment proceedings and also had taken a view which was a legally plausible view. We are unable to accept the proposition that the entire explained cash transaction should be brought to tax in the hands of the assessee, since it is a settled principle of law only the real “income” may be subject to tax in the hands of the assessee and nor the entire receipts. Accordingly, AO not erred in applying the GP rate of 19.40% after holding that the aforesaid sum represented unaccounted cash sales of assessee. AO took one of plausible/possible view looking into the instant facts of the case and the ld. PCIT cannot take recourse to proceedings u/s. 263 of the Act only with a view to supplant/substitute his own view with that of the Assessing Officer on the ground that alternate view should have been taken by the Assessing Officer. As decided in Malabar Industrial Co. Ltd. [2000 (2) TMI 10 - SUPREME COURT] Income Tax Officer has taken one view with which the Commissioner does not agree, it cannot be treated as an erroneous order prejudicial to the interest of the Revenue unless the view taken by the Income Tax Officer is unsustainable in law. Assessee appeal allowed.
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