TMI Blog2023 (2) TMI 505X X X X Extracts X X X X X X X X Extracts X X X X ..... be erroneous so as to be prejudicial to the interest of the Revenue. PCIT, on the other hand, has not brought out any satisfaction in his order as to why the assessment order should be held erroneous so as to be prejudicial to the interest of the Revenue. This is so because the PCIT has not given any finding regarding the detailed inquiry already completed by the AO which is evident in the assessment order itself. Without giving such finding regarding the entire evidences furnished by the assessee, vis- -vis the sources of income of the assessee, merely pointing out some discrepancies which is also not coming out from the admitted facts of the case, is nothing but an action that the ld. PCIT resorted to passing order u/s.263 only for t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssment proceedings, as per the notices served on the assessee u/s.143(2) and 142(1) calling for the information regarding the evidences of the sources of cash deposits and sources of properties purchased/sold and working of capital gain in respect of properties sold, the assessee made online submissions, furnished necessary details, as called for by the Assessing Officer (AO). It was submitted before the AO that the assessee is a farmer belonging to traditional farmers family and earning only Agricultural income which is exempt from tax. The cash deposited in the savings bank with Bank of Baroda, Branch Velapur was out of the sale of agricultural land, withdrawal from other bank accounts out of Agricultural income only. In support, the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch the assessee purchased was for a total consideration of Rs.94,80,340/-. The assessee could not explain the source of Rs.10,65,340/-, i.e.( Rs.94,80,340 Rs.84,15,000). The ld. PCIT further observed that the assessee had claimed huge agricultural land cultivation from cultivation of Pomegranate and Sugarcane which was rather on the higher side as compared to the productivity levels estimated in the reports of State Government of Maharashtra for F.Y. 2015-16. With these observations, the ld. PCIT held that the order of assessment completed by the AO was erroneous so as to be prejudicial to the interest of the Revenue and therefore, passed the order u/s.263 of the Act. 4. At the time of hearing, the ld. Authorised Representative (AR) of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... In response to these queries, the assessee had submitted online submissions and furnished necessary details as called for by the ld. AO. It was submitted that the assessee belongs to family of traditional farmers and staying with the joint family having only agricultural income as the source of income. During the year, the assessee had deposited cash in his savings bank account with Bank of Baroda, Velapur Branch out of sale of agricultural lands, withdrawal from other bank accounts out of agricultural income only. The assessee had furnished statement showing cash deposits with sources thereof before the AO and has also given index copies of the purchase and sale of lands. It was also explained before the AO that the property sold was a ru ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Revenue. 6. The Hon ble Supreme Court in Malabar Industrial Company Ltd. Vs. CIT (2000) 243 ITR 83 (SC) has held that On a bare reading of section 263 of the Act makes it clear that the Commissioner has to be satisfied with twin conditions that the order of the AO which he seeks to revise has to be erroneous so as to be prejudicial to the interest of the Revenue. If one of them is absent, for example, if the order of the AO is erroneous but is not prejudicial to the Revenue or if it is not erroneous but is prejudicial to the Revenue recourse cannot be taken to section 263 of the Act. The Hon ble Rajasthan High Court in the case of CIT Vs. Trustees of Anupam Charitable Trust (1987) 167 ITR 129 (Raj.) held that the error envisaged u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Hon ble Bombay High Court in the case of CIT Vs. Gabriel India Ltd. (1993) 203 ITR 108 (Bom) observed and held that in the garb of exercising power u/s.263, the Commissioner cannot initiate proceedings with a view to start phishing and roving enquiry in matters or orders which are already concluded. Such action will be against the well accepted policy of law that there must be a point of finality in all legal proceedings that stale issues should not be reactivated beyond a particular stage and with lapse of time itself induce repose in and set at rest judicial and quasi-judicial controversies as it must in other spheres of human activity. Therefore, upon examination of the facts and circumstances and the judicial pronouncements, we are ..... X X X X Extracts X X X X X X X X Extracts X X X X
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