TMI Blog2022 (1) TMI 418X X X X Extracts X X X X X X X X Extracts X X X X ..... under Section 263, the twin conditions, namely, the order is erroneous and the order is prejudicial to the interest of the Revenue must be satisfied. In the instant case, since the Assessing Officer has called for various details and after verification of the same has passed the order, therefore, the same cannot be treated as erroneous, as held by Hon ble Supreme Court in the case of Malabar Industrial Co. Ltd. [ 2000 (2) TMI 10 - SUPREME COURT] We also get support from the decisions of Mumbai Bench in the case of Narayan Tatu Rane, [ 2016 (5) TMI 1162 - ITAT MUMBAI] and Delhi bench in the case of Amira Enterprises Ltd [ 2017 (12) TMI 188 - ITAT DELHI] and Co-ordinate Bench in the case of P.Narasihma Reddy [ 2018 (7) TMI 1865 - ITAT HYD ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... failed to appreciate the legal position that his observations and findings in the order u/s.263 of the Act, would amount to review of the matter which is not permissible in the eye of law. 6. The ld CIT failed to appreciate the fact that the provisions of section 263 cannot be invoked to examine source of source especially when the farmers confirmed on oath, and sources for repayment on cancellation was also examined in the hands of the appellant. 7. The ld Revisional Authority erred in adopting a prejudicial view on the basis of initial explanation by the appellant, overlooking the fact that the subsequent correct explanation was noticed and fully verified by the AO. 8. The ld Revisional Authority erred in invoking the provisions ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , we condone the delay of 291 days and admit the appeal for adjudication. 5. Facts of the case are that the assessee is an NIR, filed his return of income for the assessment year 2013-14 on 20.3.2015 admitting taxable income of ₹ 3,61,720/- from other sources and claimed refund of ₹ 18,810/- from the TDS made of ₹ 35,465/-. The Assessing Officer completed the assessment u/s.143(3) r.w s 147 of the Act on 31.12.2018 assessing taxable income at ₹ 10,61,720/-. 6. The CIT (IT TP), Hyderabad, issued notice u/s 263 dated 11.12.2019, seeking to revise the assessment order passed u/s 143(3)/147 of the Act. The CIT (IT TP), Hyderabad was of the view that the assessment order was passed without making proper inquir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed on 30.10.2014 and information regarding two farmers was filed. Ld A.R. submitted that during the course of reassessment u/s.147 of the Act, in response to enquiry u/s.133(6), copies of the sale agreement, cancellation of agreement, Aadhar cards of the farmers, receipt of sale of agricultural produce to a local grain miller by the concerned farmers, pattadar pass books, bank statements of the farmers and a certificate of the respective agricultural land holdings and revenues of the farmers by the concerned village revenue officer were also filed. He submitted that in response to notice u/s.131 of the Act, both the farmers appeared and confirmed the transaction and provided the requisite information and documents. Thus, the Assessing Offic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing regarding source of cash deposits of ₹ 2.25 crores. Ld DR submitted that the assessee has changed his view regarding source of cash deposits in the bank. It was initially submitted that the cash withdrawn through bankers cheques from the account held with Coutts Co in London. It was further stated that these deposits were made to meet some local expenditure at Nellore towards renovation of ancestral home, marriage of sister, repayment of some monies vowed to friends, etc. But when the matter was taken up with SBI, Nellore Branch, it was cleared that those cheques were not presented to the account and later on the assessee retracted to his earlier statement and stated that monies deposited into the account were not out of the enc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... purpose of verifying the cash deposits in the NRO bank account and in response to the notice, on 29.11.2017, 21.5.2018 and 17.12.2018, the assessee filed supporting evidences before the AO. On 29.11.2018, the AO summed two farmers, who confirmed the transaction and the amounts paid to the assessee to the tune of ₹ 2.25 crores alongwith details such as pattadar passbooks, bank account statements and aadhar cards etc. in support of their claim of credibility. Therefore, the Assessing Officer has accepted the cash credits into NRO account of ₹ 2.25 crores and disallowed ₹ 7,00,000/- in the SBI account and completed the assessment u/s.143(3)/147 of the Act. Hence, it cannot be said that the Assessing Officer has not made prop ..... X X X X Extracts X X X X X X X X Extracts X X X X
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