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2022 (2) TMI 751 - AT - Income TaxRevision u/s 263 by CIT - unrecorded advances found during the course of survey and taxability thereof - HELD THAT:- This matter was enquired by the AO and specific queries have been raised in respect of documents found during the course of survey as part of notice u/s 142(1) the reply submitted by the assessee has been duly examined by the AO including the statement of the assessee recorded during the course of survey where there is clear mention about rotation of funds and how the final figures has been arrived at, the findings of the survey team, the surrender made by the assessee and additional income offered in the return of income. It is therefore not a case where the AO has merely gone by the surrender made and additional income offered by the assessee in the return of income rather the AO has examined the whole gamut of documentation found during the course of survey and thereafter has accepted the additional income so offered by the assessee towards the discrepancies found during the course of survey. Thus, it cannot be said that there is failure on part of the AO to make proper enquiries and verifications which should have been made in respect of these transactions found during the course of survey. Agreement for purchase of property and payment therefore - AO has raised a specific query as part of initial notice u/s 142(1) dated 24.07.2018 and in response to the same, the assessee has submitted that he has made a payment of ₹ 36 lacs towards purchase of a residential house and a part of which has been funded through bank borrowing amounting to ₹ 27 lacs from the OBC Bank duly reflected in the financial statements. We therefore find that the matter has been duly examined by the AO and after taking into consideration the submission of the assessee including the source of payment towards the purchase of residential house, the same has been accepted and no adverse finding has been recorded. Thus, it cannot be said that there is failure on part of the Assessing officer to make proper enquiries and verifications which should have been made in respect of the said transaction. There is no basis to hold that the order passed by the Assessing officer is erroneous is so far as prejudicial to the interest of the Revenue - Decided in favour of assessee.
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