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2022 (12) TMI 1120 - ITAT DELHIRevision u/s 263 - Reopening of assessment u/s 147 - Addition being profit working out on cash deposits - surrendering a profit @8% on the balance unexplained cash deposited by applying provisions of section 44AD - HELD THAT:- AO has considered surrendered income - The assessment order reflects that AO had taken into account the peak credit balance factor also. Thus, there appears to be an erroneous exercise of jurisdiction by Ld. Revisional Authority as the issue was thoroughly examined by the Ld. AO and taking into consideration the facts and circumstances assessment order was passed. There is force in the submission of AR, that when Ld. AO had examined the issue of deposit of cash and accepted it to be business income then Ld. PCIT was in error in setting aside the assessment order on the ground that one part of the income was assessed as per P & L account and the other part of income was assessed as per the provisions of section 44AD of the Act, because as such there was no loss of revenue and rather the P & L Account profit percentage being lower, the revenue only gained. That being so, the assessment order cannot be considered to be one prejudicial to the interest of revenue and accordingly invoking of the jurisdiction u/s 263 by Ld. PCIT is not justified. The ground raised are decided in favour of the appellant. The appeal of assessee is allowed.
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