9911796707
TMI Blog2022 (12) TMI 682X X X X Extracts X X X X X X X X Extracts X X X X ..... (3) of the Act. 3. Representative of both the sides were heard at length. Case records carefully perused. 4. Briefly stated the facts of the case are that the original return of income was filed on 21.06.2011 declaring income of Rs.159880/-. Proceeding u/s. 147 of the Act were initiated by issue of notice u/s. 148 of the Act on 26.03.2018. The assessee was asked to explain cash deposits aggregating to Rs.5364835/- in the bank account. In his reply the assessee stated that he was doing a business as commission agent at Kirana Mandi, Ghaziabad and the cash deposited in the bank account represented sale proceeds of goods on which the assessee has declared profit @ 8 % u/s. 44 AD of the Act. After discussion the assessment was completed on t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nance of books of accounts etc. (ii) The AO's passive attitude throughout the assessment proceedings and his failure to make proper enquiries have rendered the assessment order passed by him to be susceptible to be erroneous is so far as it is prejudicial to the interest of the Revenue. The Hon'ble Delhi High Court, in the case of Gee Enterprises Vs. Addl. CIT (1975) 99 ITR 375 (Del.) has held that the word erroneous includes cases where AO has remained passive and he has failed to ascertain true facts by making necessary enquiries. 6. In his reply the assessee reiterated that being a commission agent he has filed the return u/s. 44 AD of the Act. After considering the facts and the submissions the Pr. CIT concluded as under :- "I ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aken by the Assessing Officer is unsustainable in law ............" whereas in the instant case there are no two views possible. The assessee has unambiguously stated that he was doing commission agent business and section 44AD (6)(ii) categorically excludes such business from the applicability of section 44AD." 7. Before us the Counsel for the assessee vehemently stated that there is no error in the assessment order making the assessment order erroneous and pre judicial to the interest of the revenue. The Counsel further stated that the assessee has furnished complete details in support of his claim. The DR strongly supported the findings of the Pr. CIT. 8. We have given a thoughtful consideration to the rival submissions. The undispute ..... X X X X Extracts X X X X X X X X Extracts X X X X
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