TMI Blog2021 (11) TMI 46X X X X Extracts X X X X X X X X Extracts X X X X ..... e documents on record by no stretch justify the acceptance of the claim of the assessee by the AO. No person of sound and logical mind could have, in the circumstances, found the claim of the assessee justifiable in the light of the conflicting documents before the AO - AO, therefore, not proceeding with conducting further inquiry on the issue and having accepted the claim of the assessee, the order passed by the AO we agree with the ld. PCIT, is erroneous and prejudicial to the interest of the revenue. In the present case, it is not a case of difference of opinion but infact it is clear that the opinion of the AO was one which was not justified by the evidences on record and therefore, the finding of error by the Ld.Pr. CIT on account of lack of inquiry/inadequate inquiry by the AO on the issue is, we hold, in accordance with law for the purpose of exercising revisionary jurisdiction u/s 263 of the Act. The order of the Ld. Pr.CIT is accordingly upheld. - Decided against assessee. - ITA No. 88/CHD/2021 (Assessment Year : 2011-12) - - - Dated:- 27-10-2021 - SMT. DIVA SINGH, JM AND SMT.ANNAPURNA GUPTA, AM Assessee by : Shri Nikhil Goyal, CA Shri Ashok Goyal, CA Re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hereafter took us to the assessment order and drawing our attention to the same, he stated that the assessee's case had been reopened u/s 147 of the Act, specifically for the purpose of examining this cash deposit which the AO had duly done. He pointed out that after confronting the assessee with the issue of source of cash deposit, a detailed reply was filed by the assessee explaining the source, as being out of his past savings, agricultural income and amount received from Shri Pradeep Singh, which was supported by an affidavit from him. The AO had, after considering the same, accepted the explanation of the assessee. He also drew our attention to the findings of the AO to the effect that regarding the genuineness of the facts mentioned in the affidavit necessary verification had been made and that the assessee had submitted cash flow statement explaining every single debit entry in detail in the same alongwith relevant supporting documents. The ld. counsel for the assessee thereafter contended that it is evident from the same that it is not a case of lack of Inquiry at all and therefore, the ld. PCIT s exercise of revisionary jurisdiction in these facts and circumstances was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing Officer simply relied upon the submission made by the assessee and did not make any enquiry to find out correctness of these affidavits. In Nakal Jamabandi filed by the assessee during assessment proceedings, he has been shown as cultivator of his agriculture fields whereas he has claimed that he has given his land on lease. The Assessing Officer has failed to call for Girdawari Report from Halka Patwari and even failed to examine source of cash of ₹ 9,50,000/- shown to be given by Sh. Pardeep Singh to the assessee. The Assessing Officer has also failed to enquire about the lease deed/agreement in case executed by the assessee with Sh. Pardeep Singh. These facts clearly prove that the Assessing Officer had completed the assessment without carrying out necessary proper enquiry which he ought to have carried out. This failure on part of the Assessing Officer, renders the assessment order erroneous in so far as it is prejudicial to the interest of revenue. The AO should conduct detailed inquiries regarding the claim of the assessee that he had received cash from Shri Pradeep Singh for leasing out his land to him. The affidavit should be examined in detail. It required the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nquiry by the AO regarding the genuineness of the claim of the assessee that he had received ₹ 9,50,000/- by leasing out his land to Shri Pradeep Singh. The documents on record by no stretch justify the acceptance of the claim of the assessee by the AO. No person of sound and logical mind could have, in the circumstances, found the claim of the assessee justifiable in the light of the conflicting documents before the AO. The AO, therefore, not proceeding with conducting further inquiry on the issue and having accepted the claim of the assessee, the order passed by the AO we agree with the ld. PCIT, is erroneous and prejudicial to the interest of the revenue. 11. The case laws relied upon by ld. counsel for the assessee are of no assistance since the proposition laid down therein revolves around the peculiar facts and circumstances in those cases. In the case of Jeewan Kumar(supra), the facts reveal that there was certain cash which was found in the possession of the assessee during checking by the Surveillance Team which he explained to belong to the proprietorship concern of his father of which he was an employee. The AO accepted the assessee's explanation after consi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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