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TMI Blog2015 (7) TMI 937X X X X Extracts X X X X X X X X Extracts X X X X ..... case of the assessee was selected by the Assessing Officer for scrutiny in order to verify the source of cash deposits aggregating to Rs. 17,06,000 found to be made in the Savings Bank Account maintained by the assessee in Axis Bank, Although the assessee explained that such amounts were received by him from various individuals for the purposes of purchase and sale of securities, he could not produce any evidence to support and substantiate the same. Finally, he agreed for offering to tax the peak credit balance in the account. In this regard, he prepared and furnished a cash flow statement, showing such peak credit at Rs. 5,90,884 and accepting the same, addition of Rs. 5,90,884 was made by the Assessing Officer to the total income of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... und the case-laws to be distinguishable on facts. According to him, decision of the Hon'ble Supreme Court in the case of Malabar Industrial Co. Ltd. V/s. Commissioner of Income-tax (243 ITR 83) was in favour of the Revenue on the issue of assumption of jurisdiction under S.263. 4. As regards the error pointed out by the learned Commissioner in the notice issued under S.263, it was submitted on behalf of the assessee that cash flow statement considering the deposits and withdrawals in the SB account was prepared and furnished before the Assessing Officer and after verification of the same, the peak credit was adopted by the Assessing Officer for the purposes of making the addition. It was contended that this aspect is therefore, was dul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... needed immediately, the withdrawn cash was re-deposited in the bank account. The assessee has not explained the amount of expenditure incurred on his health and used the withdrawn money. The assessee did not submit the details of the alleged persons from whom the monies were borrowed either in the assessment proceedings or in th present proceedings. As the Assessing Officer failed to call for the details of the sources and enquire into the same, the issue is remitted to the file of the Assessing Officer to call for the details and cause necessary enquiries and determine the unexplained deposits u/s/ 69 of the I.T. Act, 1961 based on the findings." For the reasons given above, the learned Commissioner held that the order passed by the Ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cer for the purposes of making addition. He contended that there was thus no error in the order of the Assessing Officer as alleged by the learned Commissioner calling for revision under S.263. He also contended that the learned CIT(A) while setting aside the order of the Assessing Officer vide his impugned order, has directed the Assessing Officer to reassess the assessee's income for the year under consideration, thereby leaving the entire assessment open to the Assessing Officer, which is not permissible under S.263. 6. The Learned Departmental Representative on the other hand, strongly supported the impugned order passed by the learned Commissioner under S.263. He submitted that there was a clear failure on the part of the assessee to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thereafter. As submitted by the learned counsel for the assessee before me, assessee was having another bank account with HDFC Bank and withdrawals made from the said account in cash as well as other receipts in cash were available with the assessee, and after incorporating the same in the cash summary, the peak credit balance in the cash account was arrived at Rs. 5,90,884 as on 23rd February, which was considered by the Assessing Officer for the purpose of making the addition. He has also plaed on record before me, a copy of the bank account of the assessee with HDFC Bank at page Nos.28 to 35 of the assessee's paper-book. A perusal of the same however, shows that there were hardly any cash withdrawals made by the assessee from the said a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essee. Even otherwise, the impugned order of the learned Commissioner passed under S.263 has to be read as a whole and the scope of assessment to be made by the Assessing Officer in the set aside proceedings is always confined to the issues pointed out by the learned Commissioner in the order passed under S.263. I, therefore, find no merit in the contention of the learned counsel raised in this behalf. I therefore, reject this contention raised by the learned counsel for the assessee, being devoid of merit. The impugned order of the learned Commissioner is accordingly upheld and this appeal of the assessee is dismissed.
9. In the result, appeal of the assessee is dismissed.
Pronounced in the court on 24th July, 2015. X X X X Extracts X X X X X X X X Extracts X X X X
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