TMI Blog2022 (2) TMI 1207X X X X Extracts X X X X X X X X Extracts X X X X ..... from the capital balances of partnership firm and withdrawal from bank loan, and established that there remained no un-disclosure before the lower tax authority. We concur with the contention of Ld AR that, the statements were duly verified and discrepancies were taxed after due inquiries as embedded in the statutory provisions of law and the law laid down in MALABAR INDUSTRIAL CO. LTD. VERSUS COMMISSIONER OF INCOME-TAX [ 2000 (2) TMI 10 - SUPREME COURT] PCIT sitting on the same fence overlooked the inquiries conducted by the lower tax authority like leaving the dead unattended and hence we do not concur with the views of Ld PCIT that, assessment lacks proper inquiry into sources of cash receipt / deposits for the reasons set in the preceding paragraphs. Thus the assessment proceeding suffers from no-infirmity so far as the conduction of inquiry is concern; consequently, we do not hesitate in upholding the order of Ld PCIT with infirmity and quashed the revisionary order passed u/s 263. - Decided in favour of assessee. - ITA No. 59/RPR/2021 - - - Dated:- 25-2-2022 - Shri Ravish Sood, Judicial Member And Shri Jamlappa D. Battull, Accountant Member For the Ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the regular assessment passed u/s 143(3) of the Act, the Ld PCIT assumed the revisionary jurisdiction u/s 263(1) by issue of show cause notice [for shot SCN ] dt 12/03/2012 and considering the submission of the appellant, directed the Ld AO for de-nova adjudication on asserting the absence of enquiry. 4.3 Against this 263 revisionary order; the appellant assessee is before this Tribunal assailing the grounds as laid herein before at para3. 5. After hearing to the rival contention of both the parties; perused material placed on record and duly considered the facts of the case in the light of settled legal position and the case laws relied upon by the appellant assessee as well the respondent revenue. 6. Form the records and the rival contention vis- -vis submission of both the parties it transpired that; 6.1 The primary issue in the present controversy is twofold, firstly as to whether the order passed by the assessing officer u/s 143(3) can be said to be erroneous and prejudicial to the interest of the revenue within the preview of section 263 of the Act, and secondly whether there was violation of principle of Audi Alteram Partem in the course of revisionary ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4 Renuka Sahkari Bank LC-1-000080 33,54,700 Total 64,74,700 a. Receipt from profession (self-employed as architect) b. Withdrawals from partnership firm M/s Konark Builder c. Withdrawals from Bank loan 6.3.3 While scrutinising the entries of these bank statements, loan account statements and capital account statements, the Ld AO observed the negative cash difference of ₹3, 17, 414/-in Renuka Sahkari Bank account and when the appellant failed to substantiate with evidential material explaining the shortfall, the same was brought to tax as unexplained cash credit u/s 68 of the Act and with this solitary addition, proceedings were concluded determining the total income of the appellant at ₹9, 85, 294 for the AY 2015-2016. 6.4 The Ld PCIT perusing the order of his lower authority, contending one as erroneous and prejudicial to the interest of revenues owning to absence of enquiries into source of such cash receipts, assumed the revisionary jurisdiction and thereby called upon the assessee to showca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... direct, clear and an unreserved submission from the assessee in reply to aforesaid query, and c. The submission must be followed by detailed inquiry(and not enquiry) by the tax authorities into assessee s eligibility of claim, basis of claim, genuineness of claim and compliance of pre as well post conditions as may be attached to the claim under scrutiny, and d. There should be even-handed application of mind by the adjudicating authority in reaching out the allowability or dis-allowability of claim under consideration, e. And finally, the adjudication must ensure the correct application of law as regards to aforesaid following principle of natural justice. 7.2 Before we proceed to adjudicate further, we make a note that, the Hon ble Lordship in their higher wisdom (to which we always bow down respectfully) in Malabar Industrial Co Ltd (Supra) has used the word inquiry and not enquiry in tune with that of the legislature intent who has also used the word inquiry and not enquiry while laying down the provisions of section 263 which is of prime concern here. 7.3 To our limited knowledge the word enquiry and inquiry are dissimilar, the word enquiry me ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... were carried out by the assessing officer. In this respect we concur with the contention of Ld AR that, the statements were duly verified and discrepancies were taxed after due inquiries as embedded in the statutory provisions of law and the law laid down by Hon ble Apex Court in Malabar Industries Co Ltd (Supra)which can be summarised as observation made in the instant case as; a. Sources of cash receipts, disclosed before the revisionary authority were indifferent with that of disclosed during the course of assessment proceedings and b. Entries as appearing in bank account statements were accepted in the evince of supporting material substantiating the source and c. Inquiries into sources as declared by the assessee were verified and the discrepancies were brought to tax. 9. In the light of above, we observed that, the Ld PCIT sitting on the same fence overlooked the inquiries conducted by the lower tax authority like leaving the dead unattended and hence we do not concur with the views of Ld PCIT that, assessment lacks proper inquiry into sources of cash receipt / deposits for the reasons set in the preceding paragraphs. 10. This Considering the entire ..... X X X X Extracts X X X X X X X X Extracts X X X X
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