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TMI Blog2017 (5) TMI 1314X X X X Extracts X X X X X X X X Extracts X X X X ..... e facts of the case are that the assessee is in the business filed return of income for the AY 2009-10 declaring total income of Rs. 1,72,996/- on 07/08/2009, which was processed u/s 143(1) of the Act. Thereafter assessment was completed u/s 143(3) accepting the return filed by the assessee. 4. Thereafter, the CIT by exercising his power u/s 263 of the Act called for the assessment records of the assessee and after examining the same, came to a conclusion that the AO has not examined the bank accounts and also certain payment made by the assessee which were exceeded more than Rs. 20,000/-. The CIT recorded a finding that the AO in the course of assessment proceedings u/s 143(3) has not examined the details properly, therefore, the assessme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e any enquiry nor called for any details in respect of bank deposits and also in respect of payments which exceeded Rs. 20,000/- and simply accepted the return filed by the assessee. We also find that the CIT has correctly set aside the order of the AO and directed to redo the assessment as the AO has not made any enquiry and no details were called for, but, simply accepted the return filed by the assessee. When the Bench has specially pointed out to the ld. AR of the assessee that any questionnaire issued or any details were called for by the AO during the course of assessment, the ld. AR submitted that no such questionnaire and details were called for by the AO. Therefore, in the totality of the facts and circumstances of the case, we are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... T(A) that the amount of Rs. 30,34,850/- in the bank account related to M/s Madhuri Agencies in which the assessee is a partner and, therefore, the addition cannot be made in the hands of the assessee. The CIT(A) simply rejected the submissions of the assessee on the ground that the account maintained by the assessee and, therefore, it cannot be said that the amount belonging to the firm i.e. M/s Madhuri Agencies. Accordingly, he confirmed the action of the AO. 12.1 As regards the disallowance of diesel expenses to the tune of Rs. 3,17,825/- u/s 40A(3), the assessee in his written submissions stated that he had incurred diesel expenses of Rs. 12,71,116/- during the AY Rs. 12,71,116/- and not Rs. 3,17,825/- as stated by AO. He further stated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (A) refused to accept the submissions of the assessee and confirmed the addition made by the AO. The only issue to be decided by us is whether the deposits belonging to the assessee or to the firm M/s Mahduri Agencies ?. The issue needs a detailed examination, and therefore, to meet the ends of justice, we remit the issue back to the file of the AO with a direction to examine all the details and decide the issue in accordance with law after providing reasonable opportunity of being heard to the assessee. The assessee is directed to substantiate his claim before the AO by way of documentary proof. 17. As regards the disallowance of diesel expenses to the tune of Rs. 3,17,825/- u/s 40A(3) is concerned, the ld. DR invited the bench attention ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntioned by the AO and the amount mentioned by the ld. DR are not matching and there is a difference in the total amount. Thus, we set aside the order passed by the CIT(A) and remit the matter back to the file of the AO with a direction to examine the ledger account of the assessee and, if, he found any violation by the assessee in making the cash payments exceeding Rs. 20,000/-, invoke the provisions of section 40A(3) and decide the issue in accordance with law. 20.1 So far as the argument of the ld. Counsel for the assessee that the revenue's appeal is not maintainable as the appeal is below Rs. 10/- lakhs, ld. DR submitted that this case is taken up for scrutiny as objected by the audit party and, therefore, the appeal comes under except ..... X X X X Extracts X X X X X X X X Extracts X X X X
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