TMI Blog2021 (8) TMI 1163X X X X Extracts X X X X X X X X Extracts X X X X ..... assessment order u/s 143(3) of the Act. Therefore, certainly it is not a case wherein adequate enquiries at the assessment stage were not carried out or assessment was made in haste. However, what is an opinion formed as a result of these enquiries and verification of the materials is something which is in exclusive domain of the Assessing Officer, and even if Ld. Pr. Commissioner does not agree with the results of such enquiries, the resultant order cannot be subjected to revision proceedings. - Decided in favour of assessee. - ITA No.37/SRT/2021 - - - Dated:- 23-8-2021 - Shri Pawan Singh, JM And Dr. A. L. Saini, AM For the Assessee : Shri Ashwin Parekh, AR For the Revenue : Shri S.T. Bidari, CIT(DR) ORDER PER DR. A. L. SAINI, ACCOUNTANT MEMBER: Captioned appeal filed by the assessee, pertaining to assessment year (AY) 2016-17, is directed against the order passed by the Learned Principal Commissioner of Income Tax(Central), Surat [in short the ld. PCIT ], dated 31.03.2021,under section 263 of the Income Tax Act 1961, (hereinafter referred to as the Act ). 2. Grounds of appeal raised by the assessee are as follows: 1. The lear ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Assessing Officer has accepted the Long Term Capital Gain ( in brief, LTCG), as disclosed by the assessee on the above property, as such, and passed the order u/s 143(3) of the Act. However, on perusal of the case records and AIR information in the case of the assesse, it was noticed by ld PCIT that the assessee along with a co-owner have sold another immovable property for sale consideration of ₹ 3,06,00,000/-. The Assessing Officer in his notice dated 22.10.2018, u/s 142(1), has called for details of the transactions i.e. copy of the sale deed of the property sold during the year (vide Point No.d). 5. In response to the queries raised, the assessee has submitted before AO the details of Long Term capital gain, as disclosed in the return of Income, and the Assessing Officer has accepted the same. However, on perusal of the details of long term capital gain submitted by the assessee, it was observed by the ld PCIT that no details of the above mentioned property as appearing in the AIR Information has been shown by him and no capital gain on the same has been disclosed. In this regard, it is noticed that as reported in ITS/AIR/CIB data, the property was sold for a cons ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6,00,000/-. The AO in his notice dated 22.10.2018 u/s 142(1) has called for details of the transactions i.e. copy of the sale deed of the property sold during the year vide Point No.(d). In response to the queries raised, you have submitted the details of Long Term capital gain as disclosed in the return of Income and the Assessing Officer has accepted the same. However, on perusal of the details of long term capital gain submitted by you, it is observed that no details of the above mentioned property as appearing in the AIR Information has been shown by you and no capital gain on the same has been disclosed. In this regard, it is noticed that as reported in ITS/AIR/CIB data, the property was sold for a consideration of ₹ 3,06,00,000/- and registered sale deed was executed on 13.08.2015 with Sub Registrar Office, Katargam, Surat. In view of the above facts and circumstances of the case, it is observed that the Assessing Officer has not made any verification of the above mentioned issue of capital gain by taking cognizance of the AIR information. It is, therefore, evident that the assessment in your case was completed without making due inquiries and verification in res ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... furnished the following details: (1) It was submitted by assessee that the property in question was jointly purchased by him, with Shri Jayantibhai, Virjibhai Babariya, for a total consideration of ₹ 3,04,43,950/-(including Stamp Duty of ₹ 14,08,300/-, Registration Fees of ₹ 2,87,650/- and Advocate Fees of ₹ 8,000/-, on 26.07.2012. In support of the claim he has furnished a copy of registered sale deed bearing No. SRT/4/15408/2012 dated 16.07.2012. Since assessee was holding 50% share in property, his share of investment in the said property is ₹ 1,43,74,000/-. Further, on perusal of the details furnished by the assessee, it was observed by ld PCIT that the assessee has shown this property as fixed assets in Assessment Years 2013-14 and 2014-15. However, in the assessment year 2015-16, the assessee has shown this property as purchased of ₹ 1,52,21,975/- in the Trading Account and also shown sale of ₹ 1,53,00,000/- in the Trading account and accordingly, the profit has been offered for taxation. The assessee has also furnished a copy of Registered Sale Deed bearing No. SRT/4/KTG/8794/2015 dated 13.04.2015, in respect of the said proper ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l of the submission of the assessee in respect of the bank account No. 159909969836 maintained with Indusind Bank, it was observed by ld PCIT that assessee was maintaining the following two accounts with Indusind Bank during the year under consideration: Sr. No. Account No. Name of the Bank Total Cash Deposits 1 159909969836 Indusind Bank 1,20,00,000/- 2 200999694833 Indusind Bank 1,70,00,000/- In the show cause notice issued, during the course of proceedings under section 263 of the Act, it was mentioned that the Assessing Officer has not verified the transactions reflected in the Account No. 159909969836, as the Assessing Officer has called for the Bank Statement by issue notice under section 133(6) of the Act. However, as evident from the records, the copy of the Bank Statement was received from the Bank after completion of the assessment proceedings. However, in the reply furnished by the assessee during the course of proceedings ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which is placed at paper book page no.18 wherein he asked the assessee to furnish the details of the bank account statement. In response to said show cause notice, the assessee submitted reply before the Assessing Officer which is placed at paper book page no.24 to 35. On page no.34, the assessee has submitted a copy of bank account statement and the statement showing date-wise cash deposit and the relevant bank account highlighted that the source of cash deposit. The Learned Counsel submitted that assessee has initial cash in bank account of Indusind Bank at ₹ 20,00,000/- on 06.04.2015 vide paper book page no.37, out of its cash balance. Leaned Counsel also submitted the cash flow statement and the cash deposit of their sources vide paper book page no.27, the copy of capital amount of M/s. Anjali Textile park from books of accounts of partnership Firm (vide PB.41), the assessee submitted ledger account of Anjali Textile Park from the books of accounts (vide PB.42), assessee submitted I.T. Return Acknowledgment, computation of Income of M/s. Anjali Textile Park for the AY.2016-17 (vide PB.42-48), assessee submitted the relevant portion of the Audited Balance Sheet of the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot verify the said bank statement, hence, on this count also the order passed by the assessing officer under section 143(3) of the Act, dated 24.12.2018 is erroneous and prejudicial to the interest of revenue. We note that assessee submitted before the Assessing Officer a copy of bank account statement and the statement showing date-wise cash deposit and the relevant bank account highlighting that the source of cash deposit (vide paper book page no.34). Initial cash deposited in bank account of Indusind Bank at ₹ 20,00,000/- on 06.04.2015 (vide paper book page no.37), has been explained by the assessee. It is evident from the paper book page No.36 that assessee has submitted copy of bank statement of IndusInd Bank Account No. 159909969836, before the assessing officer. The copy of the said bank statement was available to the assessing officer before passing the assessment under section 143(3) of the Act, dated 24.12.2018. Therefore, the stand of the ld PCIT that copy of said IndusInd Bank Account No. 159909969836, was not there before the assessing officer, is factually incorrect. That is, statement of IndusInd Bank Account No. 159909969836 was available before the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X
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