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2017 (5) TMI 1314 - AT - Income TaxRevision u/s 263 - Held that:- CIT exercising his powers vested u/s 263 set aside the order of the AO passed u/s 143(3) on the ground that the AO has not made any enquiry nor called for any details in respect of bank deposits and also in respect of payments which exceeded ₹ 20,000/- and simply accepted the return filed by the assessee. We also find that the CIT has correctly set aside the order of the AO and directed to redo the assessment as the AO has not made any enquiry and no details were called for, but, simply accepted the return filed by the assessee. When the Bench has specially pointed out to the ld. AR of the assessee that any questionnaire issued or any details were called for by the AO during the course of assessment, the AR submitted that no such questionnaire and details were called for by the AO. Therefore, we are inclined to accept the action of the CIT in exercising his power u/s 263 in setting aside the order of the AO passed u/s 143(3) and directed to redo the assessment. Accordingly, we uphold the order of the CIT and dismiss the grounds raised by the assessee. Addition u/s 40A - AO made addition as the assessee has made the payments by way of cash exceeding ₹ 20,000/- - Held that:- Before the CIT(A), the assessee in his written submissions stated that he has incurred diesel expenses of ₹ 12,71,116/- during the year under consideration and not ₹ 3,17,.825/- as stated by the AO. The CIT(A) without examining the record, deleted the addition. We find that in the paper book at pages 49 to 53, as pointed out by the ld. DR, there are certain payments, which exceeded ₹ 20,000/-. However, the amount mentioned by the AO and the amount mentioned by the ld. DR are not matching and there is a difference in the total amount. Thus, we set aside the order passed by the CIT(A) and remit the matter back to the file of the AO with a direction to examine the ledger account of the assessee and, if, he found any violation by the assessee in making the cash payments exceeding ₹ 20,000/-, invoke the provisions of section 40A(3) and decide the issue in accordance with law.
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