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2024 (2) TMI 989 - AT - Income TaxRevision u/s 263 - unexplained cash deposit during the demonization period - difference between ‘no enquiry’ and ‘inadequate enquiry’ - as per CIT assessee has deposited cash in old currency notes during the period of demonization and non-furnishing of bills of sales HELD THAT:- Coming to specific findings of PCIT regarding non-furnishing of bills of sales, the ld AR has submitted that copy of cash book has been furnished during the course of assessment proceedings which contains bill wise details of sales made by the assessee. Regarding sales in cash and that too for a month, the ld AR has submitted that the said fact has been duly noted by the AO that the assessee was engaged in seasonal trade activity of hosiery items and there is no bar under law to undertake cash sales. In the instant case, where the assessee has carried out seasonal trade in hosiery items duly supported by documentary evidence, the AO having examined the same and having formed a considered view accepting the said transactions and resultant profit has been brought to tax, the ld PCIT cannot be permitted to invoke his jurisdiction merely because he believes that there are certain deficiency in the documentation so maintained and furnished by the assessee and therefore, the order so passed is erroneous as the same require further examination and verification. There was proper application of mind on the part of the AO and the matter has been duly examined by the AO during the course of assessment proceedings. It is not a case where necessary inquiries have not been carried out by the AO, and in such cases, it is important that for holding the order so passed by the AO as erroneous and prejudicial to the interest of the Revenue, certain further verification and inquiries should have been conducted by the Ld. Pr. CIT which has not happened in the present case and therefore the basic condition for invoking the provision of Section 263 are not satisfied in the instant case. Merely stating that detailed and deep enquiries are required in the instant case will result in taking away a vested right of the assessee in terms of completed assessment where it has already gone through the rigorous examination by the AO and the same cannot be sustained in the eyes of law even drawing support from the explanation 2(a) to Section 263 unless it is pointed out as to which enquiry or verification was not made by the AO before passing the assessment order as held in case of Pr. CIT (Central) Vs. Kanin (India)[2022 (5) TMI 1414 - PUNJAB AND HARYANA HIGH COURT] Also in case of Ganpati International [2023 (3) TMI 1231 - ITAT CHANDIGARH] have held that where the AO had made the enquiry and Id. PCIT is trying to substitute the plausible view taken by the AO with his own view, the said course of action is not permissible under the revisionary provisions under section 263 of the Act We find that where the matter relating to source of cash deposit during the demonization period has been duly examined by the AO and there is due application of mind as discernable from the assessment order and underlying assessment records, there is no justifiable basis to invoke the revisionary jurisdiction u/s 263 of the Act - Assessee appeal allowed.
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