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2023 (7) TMI 680 - ITAT RAIPURRevision u/s 263 - cash deposits unexplained - as per CIT AO had failed to verify the authenticity of the assessee’s claim that the cash deposits in his bank account were sourced from his business of trading of agricultural and forest produce - HELD THAT:- As it is a matter of fact borne from record that the A.O while framing assessment had summarily accepted the explanation of the assessee and had not carried out any verification on the aforesaid issue, i.e. source of the cash deposits in his bank account, though the same had formed the very basis for reopening of the assessee’s case u/s. 147 of the Act, therefore, as per “Explanation 2” of Section 263 the order passed by the A.O u/s. 143(3)/147 as observed by the Pr. CIT and, rightly so, is to be deemed to be erroneous in so far it is prejudicial to the interest of the revenue u/s. 263 of the Act. Our aforesaid conviction that failure of the A.O to carry out necessary verification while framing assessment and summarily accepting the explanation of the assessee would render the order passed by him amenable for revision u/s. 263 of the Act is supported by the Judgment of Deniel Merchants (P) Ltd. [2017 (12) TMI 476 - SUPREME COURT] We thus uphold the order passed u/s. 263 - Decided against assessee.
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