TMI Blog2016 (8) TMI 806X X X X Extracts X X X X X X X X Extracts X X X X ..... ich shows a cash balance of ₹ 20,262/-. We notice that the Ld CIT has compared the cash balance available in the books of SPG & Co., as on 31.3.2008 with the opening balance of Personal books as on 1.4.2009. Hence, we find merit in the submissions of the assessee that both the cash balances could not be compared and the Ld CIT has misdirected himself in comparing both of the same. The cash balance shown in the books of SPG & CO. shall be carried forward to the next year in the accounts of business. Similarly, the cash balance shown in the personal book shall be carried forward to the next year in the personal books only. Hence the first reasoning given by Ld CIT, in our view, is without proper appreciation of the facts available on record. With regard to the cash deposits found in the bank account, the assessee has explained to the AO that he has been maintaining accounts with different banks and hence there has been overlapping of deposits. The relevant replies are available at page 11 of the paper book. The assessee has submitted the said overlapping was necessitated in connection with the purchase of property at Gaziabad. The assessee has also given the details of as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -. It is also seen that the total cash withdrawal during the same period are only ₹ 4,89,9401- where as the total cash deposit amounts to ₹ 22,96,337/- accordingly, the source of cash deposits needs to be verified. Further, the assessee has acquired immovable property for a total consideration of ₹ 34,68,600/- jointly with his wife Smt. Vandana Gupta in Ghaziabad. The source of investment of 50% share of Smt. Vandana Gupta and the investment ₹ 11,00,000/- by the assessee during the financial year relevant to AY 2008-09 needs to be verified . 4. In response to the same the assessee made following submissions along with relevant documents:- 'With reference to your notice dated 15-01-2014 u/s 263 of the I.T. Act 1961 initiating proceedings for revision of the assessment order dt. 13-12- 2011 passed by the Income Tax officer, Ward 21-3 (3) (A.0) as erroneous so as to be prejudicial to the interests of the revenue for the reasons stated therein, I seek your leave to explain point by point the factual and correct position below: OPENING BALANCE 1.1 The first ground on which the assessment is sought to be held erroneous is: (a) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2002-03 2003-04 149979 2003-04 2004-05 179441 2004-05 2005-06 301929 2005-06 2006-07 471129 2006-07 2007-08 687584 2007-08 2008-09 631212 Total Rs. 2883051 The A.O. perused, verified the information and documents and accepted the same and as such the assessment order suffers from no infirmity and there is no error in the assessment order. 2 CASH DEPOSITS The second reason for the proposed revision is for verification of cash deposits of ₹ 22,96,337. These deposits were explained in detail to the to the A.O. by my letter dated of 25-11-2011 and a detailed cash summary was provided explaining therein the source of deposit being the opening cash balance of ₹ 1272745 and overlapping cash deposits because of transactions with different banks viz the ICICI Bank, Bank of India and Janak ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ife each contributing ₹ 17,34,300 ( Copy of Agreement enclosed vide Annexure -4). 4.3 Since Vandana Gupta is independently assessed for her income under the PAN ANJPG3909Q, it is her liability to pay her share of contribution ₹ 17,34,300 4.4 The position in respect of the house is as follows : Rs Agreement Value 32,02,500 Stamp duty 2,56,000 Registration Fees 10,100 Total Cost 34,68, 6 0 0 Share of joint owners (50%) 1 7 , 3 4 , 3 0 0 Amounts paid by me 20,32, 500 A. Y 2008-09 11,00,000 A. Y 2009-10 9,32,500 Excess recoverable from Vandana 2,98,200 Amount is also duly shown in my personal balance sheet. 4.5 I explained the position to A.O explaining that payment of 9,32,000 made during t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... into the merits of the issue, we would like to discuss about the legal position with regard to the power of Learned CIT to invoke revision proceedings under section 263 of the Act. The scope of revision proceedings initiated under section 263 of the Act was considered by Hon'ble Bombay High Court, in the case of Grasim Industries Ltd. V CIT (321 ITR 92) by taking into account the law laid down by the Hon'ble Supreme Court. The relevant observations are extracted below: Section 263 of the Income-tax Act, 1961 empowers the Commissioner to call for and examine the record of any proceedings under the Act and, if he considers that any order passed therein, by the Assessing Officer is erroneous in so far as it is prejudicial to the interests of the Revenue, to pass an order upon hearing the assessee and after an enquiry as is necessary, enhancing or modifying the assessment or cancelling the assessment and directing a fresh assessment. The key words that are used by section 263 are that the order must be considered by the Commissioner to be erroneous in so far as it is prejudicial to the interests of the Revenue . This provision has been interpreted by the Supreme Court in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2011, has furnished his replies. The copy of the reply letter is placed at pages 8 to 12 of the paper book. A perusal of the same would show that the assessee has explained the details and sources for purchase of properties as well as the opening balance of cash. At page 18 of the paper book, the assessee has also furnished the personal Capital account and Personal Balance Sheet. We notice that the Personal Balance Sheet discloses a cash balance of ₹ 12,72,745/- as on 31.3.2008. At page 14 of the paper book, the assessee has furnished the Balance Sheet of M/s SPG Co. as on 31.3.2008, which shows a cash balance of ₹ 20,262/-. 8. We notice that the Ld CIT has compared the cash balance available in the books of SPG Co., as on 31.3.2008 with the opening balance of Personal books as on 1.4.2009. Hence, we find merit in the submissions of the assessee that both the cash balances could not be compared and the Ld CIT has misdirected himself in comparing both of the same. The cash balance shown in the books of SPG CO. shall be carried forward to the next year in the accounts of business. Similarly, the cash balance shown in the personal book shall be carried forward to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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