TMI Blog2022 (1) TMI 892X X X X Extracts X X X X X X X X Extracts X X X X ..... in the order passed u/s 263 by the Pr.CIT, he has not been able to bring out specifically under the given facts and circumstances why the assessment order is erroneous so as to be prejudicial to the interest of the Revenue when on the contrary all the facts were scrutinized by the Assessing Officer and he has arrived at a plausible opinion on application of mind. When all the explanations and documents from the assessee have been scrutinized and examined by the Assessing Officer in such scenario the order of the assessment cannot be held to be erroneous and prejudicial to the interest of the revenue. Pr.CIT has initiated proceedings starting a fishing and roving enquiry in the matter without bringing on record any material or evidence demonstrating that he has acted in a reasonable manner. That with regard to the chargeability of cash deposit for the purpose of taxation and the applicability of section 115BBE(1) may be separately looked into by the Department. But, this is not a fit case for assuming revisionary jurisdiction u/s 263 of the Act. Before parting, we must also mention that the practicalities of given circumstances always has to be looked into by the quasi judici ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee had filed return of income for A.Y. 2015-16 on 22.11.2016 declaring total income of ₹ 4,52,490/-. The assessment was completed u/s 143(3) of the Act. That during the course of assessment proceedings, it was found out by the Assessing Officer that the assessee is engaged in the business of Readymade Garments and also had derived income from bank interest. The assessee had shown business income of ₹ 3,05,400/- and interest income of ₹ 1,57,086/-. The assessee had also deposited cash in bank of ₹ 15,68,000/- as against the gross turnover of business of ₹ 7,88,900/-. During the course of assessment proceedings, as evident from para 4 of the assessment order, the assessee had filed explanation in respect of cash deposits in the bank and had further submitted that she had filed the return of income as per the provisions of section 44AD of the Act. The Assessing Officer made an addition of ₹ 3,00,000/- and added to the total income of the assessee for which supporting evidences were not filed by the assessee. That in the proceedings u/s 263, the Pr.CIT observed that though the turnover of the assessee s business was ₹ 7,88,900/- during ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... than ₹ 10,00,000/- in my S.B. Account with Bank. I give herewith back ground of my family and financial status including my activities of earning income for kind perusal and consideration as under:- I am a house wife and have done some business during the previous year relevant to assessment years 2015-16 for which a return of income declaring total income of ₹ 452490/- is on 22.11.2016 comprising of business income of ₹ 305400 declared U/s. 44AD and Bank interest of ₹ 157086/- My husband retired as a colonel from Indian Army in 1991 after outing 35 years of service in Army. The husband of my sister was a prince Son of Maharaja Nalagad ( Himachal Pradesh) My sister mrs Rati Kanwarani expired on 07.09.2012 had made a will in favour of my Son Shri Indervivsing Shergil (Citizen of Canada) and accordingly he got substantial movable and immovable properties. Thus my family is well to do. My husband had income from salary and interest from Banks till his retirement in addition agriculture income from ancestral agricultural lands. After retirement he has been getting pension and also income from Bank interest. He is regularly assessed to tax. An appreciation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent order is erroneous so as to be prejudicial to the interest of the Revenue when on the contrary all the facts were scrutinized by the Assessing Officer and he has arrived at a plausible opinion on application of mind. When all the explanations and documents from the assessee have been scrutinized and examined by the Assessing Officer in such scenario the order of the assessment cannot be held to be erroneous and prejudicial to the interest of the revenue. In this regard, reliance can be placed on the decision of the Hon ble Bombay High Court in the case of CIT vs. Gabriel India Ltd., 203 ITR 108 (Bombay) which was followed by the Hon ble Delhi High Court in the case of CIT vs. Sunbeam Auto Ltd., 332 ITR 167 (Delhi) and in the case of CIT vs. Anil Kumar Sharma, 335 ITR 83 (Delhi). The relevant paragraphs of the decision of the Hon ble Delhi High Court in the case of Sunbeam Auto Ltd. (supra) are extracted hereunder :- We have considered the rival submissions of the counsel on the other side and have gone through the records. The first issue that arises for our consideration is about the exercise of power by the Commissioner of Income-tax under section 263 of the Income-tax A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The Commissioner cannot initiate proceedings with a view to starting fishing and roving enquiries in matters or orders which are already concluded. Such action will be against the well-accepted policy of law that there must be a point of finality in all legal proceedings, that stale issues should not be reactivated beyond a particular stage and that lapse of time must induce repose in and set at rest judicial and quasi-judicial controversies as it must in other spheres of human activity. [See : Parashuram Pottery Works Co. Ltd. v. ITO[1977] 106 ITR 1 (SC) at page 10]. ...... 5. In the instant case, in our considered view the Pr.CIT has initiated proceedings starting a fishing and roving enquiry in the matter without bringing on record any material or evidence demonstrating that he has acted in a reasonable manner. 6. That with regard to the chargeability of cash deposit for the purpose of taxation and the applicability of section 115BBE(1) may be separately looked into by the Department. But, this is not a fit case for assuming revisionary jurisdiction u/s 263 of the Act. Before parting, we must also mention that the practicalities of given circumstances always has to be l ..... X X X X Extracts X X X X X X X X Extracts X X X X
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