TMI Blog2022 (11) TMI 408X X X X Extracts X X X X X X X X Extracts X X X X ..... cash deposited by the partners and also loan taken from Dr. HT Memorial Trust and cash embezzlement and interest free advances to related persons. All these things are not been examined by the AO. DR has rightly pointed out that ld.Pr.CIT has rightly exercised his revisionary powers u/s 263 of the Act and the AO has failed to do discharge his duty in accordance with law. AO is investigating officer thereafter he is adjudicating officer. The order passed by the AO is erroneous and prejudicial to the interest of the revenue. Therefore, the assessment order passed u/s 143(3) of the Act has rightly been set aside by the ld.Pr.CIT in exercising his jurisdictional power is upheld. We upheld the order passed by the ld.Pr.CIT and the AO is direc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r. This includes old and new currency which was deposited daily collections from the hospital. During the demonetization period, the medicine shops/doctors were allowed to collect the old currency notes (SBN) vide Ministry of Finance, Govt. of India s Notification in F.No.10/03/2016-Cy.I, dated 08/11/2016. The AO also observed that there was a delay in payment of employees contribution u/s 36(1)(va) of the Act and certain other disallowances were made by the AO and completed the assessment. Later on, the ld.Pr.CIT called . the assessment records and observed that the AO has not done full enquiry as per the Circular issued by the CBDT, in this regard, specifically in the cash deposited during the demonetization period, he has also observed t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cash deposit he has to follow the guidelines issued by CBDT during the demonetization period and pass the order accordingly. 5. Aggrieved from the order of the ld.Pr.CIT, the assessee filed appeal before us. 6. The ld.AR submitted that the ld.Pr.CIT is not justified in exercising his power u/s 263 of the Act. During the course of assessment proceedings all the compliances were made by the assessee in regard to the notice issued by the AO u/s 142(1). The reply filed by the assessee is also placed on the paper book No.3 to 11. The AO has not disputed on any of the issues as observed by the ld.Pr.CIT and the AO was satisfied from the submissions, accordingly he has passed the assessment order u/s 143(3) of the Act. Therefore there is no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h opening, availability of cash and application of cash during the demonetization period. We also observe that the AO has not verified the cash deposited by the partners and also loan taken from Dr. HT Memorial Trust and cash embezzlement and interest free advances to related persons. All these things are not been examined by the AO. The ld.DR has rightly pointed out that ld.Pr.CIT has rightly exercised his revisionary powers u/s 263 of the Act and the AO has failed to do discharge his duty in accordance with law. Firstly the AO is investigating officer thereafter he is adjudicating officer. The order passed by the AO is erroneous and prejudicial to the interest of the revenue. Therefore, the assessment order passed u/s 143(3) of the Act ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion, enquiry, evidences that the assessing officer is required to take into consideration for the purpose of assessing such cases. 8. In 1 of such instructions dated 09/08/2019 speaks about the comparative analysis of cash deposits, cash sales, month wise cash sales and cash deposits. It also provides that whether in such cases the books of accounts have been rejected or not where substantial evidences of vide variation be found between these statistical analyses. Therefore, it is very important to note that whether the case of the assessee falls into statistical analysis, which suggests that there is a booking of sales, which is non-existent and thereby unaccounted money of the assessee in old currency notes (SBN) have been pumped i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hall verify all the details / evidences filed by the assessee based on the above direction and to consider the claim in accordance with law. Needless to say that proper opportunity of being heard must be granted to the assessee. The assessee may be granted physical hearing in order to justify its claim. In the result, the appeal filed by assessee as well as the appeal of revenue stands allowed for statistical purposes. 9. Respectfully following the decision in the case of M/s Bhoopalam Marketing Services cited supra, we upheld the order passed by the ld.Pr.CIT and the AO is directed make fresh assessment in accordance with law following the CBDT guidelines in regard to cash deposited during the demonetization period The AO is al ..... X X X X Extracts X X X X X X X X Extracts X X X X
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