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TMI Blog2021 (9) TMI 1211X X X X Extracts X X X X X X X X Extracts X X X X ..... return of income for Assessment Year 2015-16 on 13.08.2015 declaring total income of Rs. 50,72,900/-. The case of the assessee was picked up for limited scrutiny viz., for the purpose of verifying large cash deposits in savings bank account and with regard to transfer of property during the previous year. The AO issued a notice dated 29.07.2016 under section 143(2) of the Act wherein he called for details with regard to the return of income filed by the assessee. The assessee in a letter dated 21.07.2017 submitted a reply with regard to properties purchased by the Assessee pointing out that during the FY 2014-15, assessee had purchased land measuring 107.65 cents bearing Sy. No. 59/11, 59/17 & 59/29 situated at Udyavara Village of Udupi Tal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f cash withdrawal made dated 09-10-2014 31-12-2014 Vijaya Bank 13,500 Out of rent received 02-01-2015 IDBI Bank 97,000 Out of rent received and cash withdrawal dated 30-12-2014 31-01-2015 Vijaya Bank 30,000 Out of rent received 12-02-2015 IDBI Bank 1,00,000 Out of rent received and cash withdrawal 31-03-2015 IDBI Bank 1,00,000 Out of rent received and cash in hand TOTAL 37,60,800 3. The AO passed an Order of Assessment under section 143(3) of the Act dated 04.08.2017 in which he made the following observations and accepted the return of income filed by the assessee. "Subsequently notices u/s. 142(1) were issued on various dates calling for certain details. In response to said notices, Shri Ramanagowda, ITP ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ned properly. Further, the statement of affairs as on 31.03.2014 and 31.03.2015 were not obtained and analysed to verify the availability of funds for the purchase of property purchased on 09.06.2014. 5. By letter dated 12.11.2018, the Assessee submitted that during the course of assessment proceedings, upon submission of the details, documents, information and clarifications called upon by the AO, we were asked to explain how the cash cheques were to be regarded as cash withdrawals from bank and hence, it was clarified that the cash withdrawals as on 03.04.2014 and 05.06.2014 are in fact bearer cheques issued in the name of A.K. Karanth (alias Krishnamurthy Karanth alias Krishna Karanth), who manages the affairs of the assessee, for the p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orted by reason however brief it may be. Thus an Order passed without making necessary inquiries or verifications, is erroneous and prejudicial to the interest of the Revenue in terms of Sec. 263 of the IT Act." 7. The CIT finally gave the following directions: "18. in view of the above facts, I hold that the Assessment Order u/s. 143(3) of the Income Tax Act 1961, dated 04.08.2017 is erroneous in so far as it is prejudicial to the Revenue. The AO is accordingly directed to revise the Assessment after making necessary inquiries regarding the cash deposits in bank and regarding the availability of funds for purchase of property, in accordance with the provisions of law and after affording adequate opportunity to the assessee". 8. Aggriev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. However, we find that the Hon'ble Karnataka High Court in the case of CIT Vs. Infosys Technologies Ltd., in ITA No. 588/2006 judgment dated 04.01.2012 referred by the CIT in the impugned order, had to deal with the following question of law: "1. Whether the Tribunal was correct in holding that the commissioner exercising Jurisdiction under Section 263 of the Act by holding that the Assessing Officer should rework the credit in respect of Canadian and Thailand Tax claimed under Double Taxation Avoidance Agreement (DTAA) without specifying the error in the original order sought to be revised and how it was erroneous and prejudicial to the interest of the revenue. 2. Whether the Tribunal committed an error in failing to appreciate t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o accept a submission of this nature would be to give a free hand to the assessing authority, just to pass orders without reasoning and to spell out reasons only in a situation where the finding is to be against the assessee or any claim put forth by the assessee is denied. 28. We are of the clear opinion that there cannot be any dichotomy of this nature, as every conclusion and finding by the assessing authority should be supported by reasons, however brief it may be, and in a situation where it is only a question of computation in accordance with relevant articles of a double taxation avoidance agreements and that should be clearly indicated in the order of the assessing authority, whether or not the assessee had given particulars or de ..... X X X X Extracts X X X X X X X X Extracts X X X X
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