TMI Blog2018 (8) TMI 1546X X X X Extracts X X X X X X X X Extracts X X X X ..... has specifically directed Assessing Officer to restrict examination of transactions in suspense account and taking such examination to its logical conclusion as per law. We therefore do not find any infirmity in order passed by Ld. CIT under section 263 of the Act as there is no injustice that is caused to assessee. - Decided against assessee. - ITA No.2395/Del/2018, ITA No.2396/Del/2018, ITA No.2397/Del/2018 And ITA No.2398/Del/2018 - - - Dated:- 23-8-2018 - SHRI R.K.PANDA, ACCOUNTANT MEMBER AND SMT. BEENA A PILLAI, JUDICIAL MEMBER For The Assessee : Sh. Hiren Mehta, CA For The Revenue : Ms. Rachna Singh, CIT, D.R. ORDER PER BEENA A PILLAI, JUDICIAL MEMBER Present appeals have been filed by assessee against order dated 30/03/18 passed by CIT Central-II under section 263 of the Income Tax Act, 1961 (the Act) for Assessment Years 2008- 09 to 2010-11 and 2013-14. Grounds raised by assessee for AY 2009-10 are reproduced hereunder. 1. That on the facts and circumstances of the case and in law, the order passed by the Pr. Commissioner of Income Tax, Central-2, New Delhi (hereinafter referred to as Pr. CIT), is bad in law and without Jurisdict ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urns were filed declaring income for Assessment Years under consideration as under: Assessment year Returned income (in Rupees) 2008-09 70,643/- 2009-10 1,95,760/- 2010-11 2,65,990/- 2013-14 7,84,881/- 2.1 . Ld.AO while conducting assessment post-search and seizure operation, observed that assessee has shown income from salary and other sources. Ld. AO from bank statement filed by assessee, observed that assessee made cash deposits in his HDFC and SBP accounts, during financial year relevant to Assessment Year under consideration. While passing assessment order under section 153A read with 143 (3) of the Act, additions were made by Ld.A.O. under the head unaccounted cash deposits , and salary received in cash for years under consideration. 2.2 . Ld. CIT upon examination of assessment records for all Assessment Years under consideration, observed that Assessing Officer completed assessments without examination/verification of balance sheet and profit and loss a/c filed b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... your contentions. You are also intimated that if nothing is received from your end, then it will be presumed that you have nothing to submit on the issues contained above and your case will be decided on the basis of material available on the record and as per the provisions of the Income Tax Act, 1961. Sd/-(RKS Pandya) Pr.CIT, Central-2, New Delhi 2.3 . Assessee in response to show cause notice filed its reply dated 19/03/18, wherein it was submitted that during assessment proceedings assessee vide reply dated 07/03/16 furnished copy of bank statements of all accounts maintained during the year and Ld. AO verified all details before passing assessment order. 2.4. Ld. CIT on perusal of reply of assessee observed and held as under: 4. I have perused the assessment records and submissions made by the assessee in this case. There was no bifurcation of suspense account of ₹ 18,28,660/- submitted by the assessee during the course of assessment proceeding before the A.O. There was no query raised by the AO and no submission made by the assessee and no verification done by the A.O. that amount in suspense account is received through proper banki ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e account and therefore Ld. CIT held assessment order to be erroneous and prejudicial to interest of revenue. She submitted that Assessing Officer is both an investigator as well as an adjudicator and is required to make proper enquiries and conduct verification before accepting statements of accounts filed by assessee. 5.1. Regarding the applicability of decision of Hon ble Delhi High Court in the case of CIT vs Kabul Chawla , she submitted that upon notice being issued under section 153A, Assessing Officer is empowered to reopen proceedings under section 143 (1) (A) or 143 (3) to assessee or reassess total income, taking note of undisclosed income if any. She further submitted that unaccounted cash deposits were found during search and seizure operations which has triggered completion of assessment u/s 153A of the Act. Ld.A.O. has therefore correctly completed the assessment u/s 153A in respect of all six Assessment years to compute undisclosed income in the hands of assessee. 5.2. She submitted that for issuance of notice under section 263, there is no embargo for incriminating material to be available. Sec.263 proceedings according to Ld.CIT, DR is initiated by Ld. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by Assessing Officer if two cumulative conditions are satisfied, where the order sought to be revised should be erroneous and it should be prejudicial to the interest of revenue. In the facts of the present case, admittedly Assessing Officer at assessment stage has not verified amount shown under suspense account . It is very apparent that Assessing Officer has not verified its sources and mode of deposit. 7.2 . In our view this is clear case of no enquiry and therefore, Ld.CIT was right in initiating proceedings under section 263 of the Act. Further, it is observed that, Ld.CIT has specifically directed Assessing Officer to restrict examination of transactions in suspense account and taking such examination to its logical conclusion as per law. We therefore do not find any infirmity in order passed by Ld. CIT under section 263 of the Act as there is no injustice that is caused to assessee. 7 . 3 . Assessing Officer is directed to follow the directions of Ld. CIT by affording assessee an opportunity of being heard. 8. Facts for all the years under consideration are identical and Ld.CIT had initiated proceedings u/s 263 for verification of suspense a/c which was over ..... X X X X Extracts X X X X X X X X Extracts X X X X
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