TMI Blog2015 (3) TMI 49X X X X Extracts X X X X X X X X Extracts X X X X ..... he AO and the CIT. Mere notarization of the sale agreement seems to be the practice in that area being schedule land. Hence the CIT, on a mere change of opinion initiated the proceedings u/s 263. The order of AO cannot be revised if it has been passed after application of mind. Merely because the opinion of the CIT is different from AO this section cannot be resorted to. In the present case the AO has gathered details with respect to repayment of hand loans by relatives and friends and also sale of agricultural land i.e. the AO has considered the explanation given by the assessee and passed an order after applying his mind. Hence, following the ratio of the decision in CIT vs. Gabriel India, [1993 (4) TMI 55 - BOMBAY High Court], we allo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... imed to have been sold by the assessee, nor proved the ownership to the agricultural land. The CIT also was of the opinion that the AO had not obtained confirmation letters from the alleged debtors, nor examined the aspects of loans given to debtors or repaid by them in cash with reference to the applicability of provisions of section 269SS and 269T of the Act. Hence, the CIT considered the order passed by the AO as erroneous in so far as it is prejudicial to the interests of the Revenue, within the scope of section 263 of the Act. In response to the show cause notice, the assessee s AR appeared and furnished the written submissions. It was stated in the submissions that the assessee is a retired employee of M/s Navabharat Ltd, Paloncha and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... led for any particulars, nor examined any alleged debtors. He also pointed out that it is not known when the loans amounting to ₹ 3,30,000/- were given and in which location the alleged debtors are residing when and how such loans were returned etc. With regard to the cash deposits on 10.01.2009 and 6.3.2009, the assessee explained that the assessee had 8 acres of agricultural land bearing No.444 situated at Paloncha Khammam and on 9.1.2009, the assessee sold 4.40 acres and on 5.3.09 the assessee sold 3 acres of agricultural land. The amounts were deposited in his S/B a/c of State Bank of Hyderabad, Paloncha. It was also explained by the assessee that he had decided to reside in his native place of Ongole after his retirement and ther ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssment order made by the AO u/s 143(3) dated 25.05.2011 is erroneous and prejudicial to the interests of revenue. Hence, it is set aside for redoing the assessment in accordance with the law as well as on the established procedure and after giving assessee a reasonable opportunity of being heard . 7. Aggrieved, the assessee is in appeal before us. The ld Counsel for the assessee Shri M.Chandramouleswara Rao reiterated the explanations given before the CIT. The ld Counsel also gave details of the amount repaid by various people who had taken loans on earlier dates from the assessee are as follows: S. No Name Amount (`.) 1 D. Ramesh, R/o Kothagudem 50,000/- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ain the genuineness of the transactions and hence inquiry made by the AO was deficient. The DR also pointed out that in case of return of loans, details with respect to the area, purpose of taking the loan and the mode of taking the loan were all missing and hence the particulars have not been examined by interrogating the alleged debtors. 10. We have heard both the parties and gone through the orders of the AO and the ld CIT. In the case of scrutiny assessment, notices have been issued u/s 143(2) and 142(1). The information furnished has been examined and on verification of the same, the assessment has been completed. The assessee has given the names and the people who have repaid the amounts to him and all the information was available ..... X X X X Extracts X X X X X X X X Extracts X X X X
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