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2022 (7) TMI 996 - AT - Income TaxRevision u/s 263 - validity of proceedings were initiated u/s. 147 against assessee - earnest money receipts - earnest money was available to the assessee on account of forfeiture and the specific property owned by the assessee continued to remain with the assessee - HELD THAT:- The relationship of Shri Sahil Gupta as the nephew of the assessee has not been assailed. His PAN details made available to the AO and presumably enquired into have not been upset by the Ld. PCIT. The fact that he has given a gift of Rs. One Lac accepted by the AO has not been shown to be an incorrect decision of the AO. Thus, the decision to further enquire into the said issue stated on an affidavit which have remained unrebutted, we find cannot be upheld. Without upsetting the contents of the affidavit, the exercise in the peculiar facts of the present case is an arbitrary exercise of power. Hence, cannot be sustained in law. Similarly, the documents relied upon in support of the earnest money available to the assessee, we find are dismissed as a "cock and bull story" without any evidence to come to the said conclusion. The fact that transaction for the property was being contemplated is an evidence on record which remains unrebutted. In pursuance thereof, earnest money has been received which remains unrebutted. The name of the purchaser and the address etc. of the witness and the parties to the document is available to the Ld. PCIT as was available to the AO. The terms and conditions stated to have been honored therein vis-a-vis. the parties to the agreement is evidence available on record. The document records that that in case the seller backs out, double the amount of earnest money is to be paid and in case sale is not completed on account of the purchaser, then earnest money is to be forfeited. Sale did not fructify. The evidence is available on record. The ownership of the said asset continues to remain vested with the assessee. In the absence of any evidence or fact rebutting the claim of the assessee, the order passed after due enquiries as per record by the AO cannot be set aside on mere inferences and presumptions. The suspicions of the Ld. PCIT cannot be the basis for setting aside a validly passed assessment order. Law requires the Ld. PCIT to meet the twin conditions of pointing to the error in the order passed and that too such an error which can be termed to be prejudicial to the interests of the Revenue. These mandatory conditions in the facts of the present case are not satisfied. Hence, on a consideration of the peculiar facts and circumstances of the present case which are borne out from the record, the impugned order cannot be upheld. Accordingly, allowing the grounds of the assessee, for the reasons given hereinabove, the impugned order is quashed. Appeal of assessee allowed.
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