TMI Blog2022 (11) TMI 417X X X X Extracts X X X X X X X X Extracts X X X X ..... , and had stated therein that the cash deposited during demonetization period. (i.e. 09.11.2016 to 13.12.2016) was collected from the customers/member and the details of the same were submitted by the Appellant in the assessment proceedings. There is no material on record to suggest that any investigation/enquiry was made by the Assessing Officer in relation to the same. No details of the inquiry/investigation conducted by the Assessing Officer have been stated in the assessment order, or the aforesaid reply/letter, or the written submissions filed before the Tribunal. The assessment order was passed without making enquiry or verification which ought to have been made by the AO in view of the fact that high value receipt of cash from thi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llant, vide order, dated 07.12.2019 under Section 143(3) of the Act at the total income of INR 41,23,830/- after denying deduction of INR 41,23,830/- claimed by the Appellant under Section 80P of the Act. Subsequently, notice under Section 263 of the Act was issued to the Appellant on 04.02.2022. The relevant extract of the aforesaid notice read as under:- 2. On perusal of records, it is seen that your case was selected for scrutiny through CASS for verification of the issues as detailed below:- (i) Low income in comparison to very high investments appearing in balance sheet. (ii) Large deduction under chapter VIA from total income. (iii) Low income in comparison to high loans/advances/investment in shares appearing in b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... icer had failed to make the necessary enquiry or verification. The relevant extract of the order, dated 16.03.2022, passed by the PCIT under Section 263 of the Act read as under: 4.1 It is seen that one of the reason for selection the case for scrutiny was to examine the source of cash deposits made during the demonetization period i.e. 08.11.2016 to 31.12.2016 in old currency notes. While computing the assessment u/s 143(3), the AO has not examined this issue. The AO before completing the assessment should have examined the source of cash deposits made in the bank account of the assessee during demonetization period. 5. xx xx 6. In view the facts discussed in para 4.1, I am of the considered view that the assessment order da ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7-18 declaring Nil income was e-filed by the assessee on 12.10.2017. The case was selected for Completely Scrutiny under CASS for the reason of Low income in comparison to high loans/advances/investment in shares appearing in balance sheet, High value receipt of cash shown from third parties in response data and Large deduction claimed under Chapter VI-A. Subsequently statutory notice u/s 143(2) of the Income Tax Act, 1961 dated 11.08.2018 was issued through ITBA and served on the assessee. Thereafter, notices u/s 142(1) dated 28.01.2019, 08.02.2019 and 19.02.2019 were issued and served on the assessee. (Emphasis Supplied) 8. Though the case of the Appellant/Assessee was also selected for detailed scrutiny for the reason of high va ..... X X X X Extracts X X X X X X X X Extracts X X X X
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