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2020 (12) TMI 42 - ITAT JAIPURValidity of revision order passed by PCIT u/s 263 - AO has not conducted the due enquiry in respect of the total deposit made by the assessee in the bank account and consequently determined total turnover of the assessee without considering the deposits made in the bank account - HELD THAT:- Assessment order was suffering from error which is factual in nature and not in respect of any view taken by the AO. There is no quarrel on the point that if the AO has taken one of the possible views, then the Commissioner is not permitted to invoke the provisions of section 263 merely because he does not agree with the view taken by the AO. Therefore, the decisions relied upon by the ld. A/R of the assessee on this point are not applicable to the facts of the present case where the ld. Commissioner has clearly pointed out the factual error in the assessment order and lack of enquiry on the part of the AO to verify the minimum required facts about the deposits made in the bank account during the year and consequential turnover of the assessee. Hence we do not find any substance or merit in the ground no. 1 challenging the validity of the revision order passed under section 263. Undisclosed bank deposits - HELD THAT:- Assessee has raised this plea that the entire deposits made in the bank account cannot be considered as turnover, however, when the assessee is not maintaining the books of account as required under section 44AA as well as the audit of the same under section 44AB, then the claim of availability of opening cash balance with the assessee cannot be accepted. The withdrawal of the amount from the bank can be considered as a source for re-depositing if the assessee can fully satisfy the AO that the withdrawal made from the bank is not utilized for any other purposes being the purchases and other expenditures incurred by the assessee in the course of business as well as personal drawings. Therefore, to that extent all the facts and details are required to be properly verified. No error or illegality in the impugned order of the ld. Commissioner to the extent that the order of the AO is erroneous and prejudicial to the interest of the revenue. However, the AO is directed to verify the availability of source of cash deposit in the bank account to the extent of cash withdrawals by the assessee.
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