9911796707
TMI Blog2022 (7) TMI 538X X X X Extracts X X X X X X X X Extracts X X X X ..... is appeal, are that the Assessee by declaring an income of Rs. 8,78,090/- had filed its return of income on dated 27.07.2016. Subsequently, the case of the Assessee was selected for scrutiny on the reason "large cash deposit in saving bank account(s), whether cash deposits have been made from disclosed sources". The AO by passing the assessment order dated 24.08.2017 accepted the returned income of the Assessee. 3. Subsequently, the Ld. PCIT scrutinized the assessment order and while exercising the powers entrusted u/s. 263 of the Act, issued notice dated 16.10.2019 to the Assessee against which the Assessee filed its reply and thereafter considering the reply of the Assessee and Assessment record, revised the assessment order u/s. 263 of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at the books of account maintained were produced during the course of assessment proceedings and they were test checked whereas in the impugned order, in para No. 6, it is mentioned that no cash book/bank book was filed during the assessment proceedings. Therefore, the fact goes contrary and shows that the order impugned herein has been passed in haste manner and without analysing and considering the particular facts and circumstances of the case. The Assessee in support of its case also relied upon the judgment passed by Hon'ble Bench at Agra in the case of M/s. Hardik Resort Pvt. Ltd. vs. PCIT (ITA No. 358/Agra/2019 decided on 14-06-2021) and specifically emphasised on para 9 and 10 of the order, wherein it was observed by the Hon ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion and without establishing that assessment order is not sustainable in law. This would inevitably mean that every order of the lower authority would thus become susceptible to Section 263 of the Act and, in turn, will cause serious unintended hardship to the tax payer concerned for no fault on his part. Apparently, this is not the intent of legislature. It is only in a very gross case of inadequacy in inquiry or where inquiry is per se mandated on the basis of record available before the AO and such inquiry was not conducted, the revisional power so conferred can be exercised to invalidate the action of AO. The AO in the present case has not accepted the submissions of the assessee totally and has passed the order in after making several ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rom the books of account produced by the Assessee. Hence we are in concurrence with the observation of the Ld. PCIT that there is nothing which can suggests that the Assessing Officer has verified the claim of opening balance of advances given and its return by the borrowers in cash qua deposits in bank account. Even no enquiry qua KYC documents of the borrowers was made to verify claim of GIRVIRECEIPS and the AO also failed to enquire about reconciliation of Bank accounts. 6.2. The Assessee before us also placed details/receipts for the period 01.04.2015 to 31.03.2016 which claimed to be 'GIRVI receipts' and submitted that the Assessee had deposited the cash in his bank out of trading receipts of Rs. 31,68,203/- and Girvi receipts ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s factually dissimilar hence not useful to the case of the Assessee. 6.5. All the facts enumerated above goes to show that foundation of enquiry qua claim of the Assessee is missing and the AO made the assessment order in cursory manner by conducting farce enquiry, which infact can not be termed as enquiry, hence we are of the considered view that in the instant case no enquiry qua issue involved, was done by the AO and therefore the Ld. PCIT was fully justified to reopen the case of the Assessee u/s. 263 of the ACT by holding the assessment order dated 24.08.2017 for A.Y. 2016-17 as erroneous and bad in law in so far as prejudicial to the interest of Revenue. 6.6. Considering the conclusion drawn by Ld. PCIT and peculiar facts and circum ..... X X X X Extracts X X X X X X X X Extracts X X X X
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