Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2022 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (10) TMI 1042 - AT - Income TaxRevision u/s 263 by CIT - As per CIT there is violation of section 40A(3) not considered by AO - HELD THAT:- AO did not gave its reasoning before allowing relief to the assessee, and erroneously accepted that since a single voucher cash payment in a day was below Rs. 20000/- and hence Section 40A(3) is not attracted, but failed to appreciate that if all such vouchers reflecting cash payment to a single party/creditor in a day are aggregated , then the total cash payment in a day to a particular party/creditor is exceeding Rs. 20,000/- which clearly is in violation of Section 40A(3) , as whether assessee making payment either through sales persons or agents is the same and the person to whom cash payment exceeding Rs. 20,000/- in a day is made is also one party Assessing Officer has not considered the issue in proper perspective and there is no estoppels against law.Thus, clearly the reassessment order passed by AO was erroneous so far as prejudicial to the interest of the Revenue, as to the enquiries and verification as ought to have been made by the AO were not made by AO during reassessment proceedings. The learned PCIT was justified in invoking its revisionary powers u/s 263, and the reassessment order dated 14.12.2018 passed by Assessing Officer u/s 147 read with Section 143(3) was rightly cancelled by ld. PCIT by invoking its revisionary powers u/s 263, and directions were rightly issued by ld. PCIT to AO to make fresh assessment denovo after investigating complete facts. We uphold the revisionary order passed by learned PCIT u/s 263 - assessee fails in this appeal which stand dismissed
|