TMI Blog2023 (4) TMI 883X X X X Extracts X X X X X X X X Extracts X X X X ..... rroneous in so far prejudicial to the interest of revenue. In holding so, we draw support and guidance from case of Malabar Industrial Co. Ltd. [ 2000 (2) TMI 10 - SUPREME COURT ] - Thus no infirmity in the order framed u/s 263 - Appeal of the assessee is dismissed. - ITA No. 37/Rjt/2023 - - - Dated:- 29-3-2023 - SHRI WASEEM AHMED , ACCOUNTANT MEMBER And SHRI SIDDHARTHA NAUTIYAL , JUDICIAL MEMBER For the Assessee : Shri Sagar Shah , A. R For the Revenue : Shri Shramdeep Sinha , Sr. D. R ORDER PER WASEEM AHMED , ACCOUNTANT MEMBER : The captioned appeal has been filed at the instance of the Assessee against the order of the Learned Principal Commissioner of Income Tax, Jamnagar, dated 04/03/2022 arising in the ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nuine delay in filing the appeal before the ITAT and therefore the same deserve to be condoned. 4. On the contrary the Ld. DR considering the reason of delay in filing the appeal did not raise any serious objection, rather the Ld. DR left the issue at the discretion of the Bench. 5. We have heard the rival contentions of both the parties and perused the materials available on record. Considering the reason explained by the assessee for delay in filing the appeal, we are of the view that the mistake has been committed by the assessee inadvertently without any mala-fide intention. Accordingly, we condone the delay and proceed to adjudicate the issue on merit. 6. The facts in brief are that the assessee in the present case is an indiv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... during the year . It is noticed from the statement of assessee's bank account No.31749236480 that the assessee had made aggregate deposits/credits of Rs.2,29,82,399/- (including cash deposits of Rs.1,74,28,450/-) during the year under consideration. On going through the ITR, it is noticed that the assessee has shown sale receipt/turnover of Rs.7,56,780/- and shown net profit of Rs.3,11,370/-. However, it is seen that there are credits/deposit entries of Rs.2,22,25,619_/-including cash deposits which were not found fully disclosed in the return of income for the A.Y 2017-18. The AO has made addition only of Rs.11,69,500/- u/s 68 of the I.T. Act whereas the assessee has made aggregate cash deposits of Rs.1,74,28,450/- including the cash ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ******************************************************** 7.1, therefore, hold that the assessment order dated 23.12.2019 finalized by the Assessing Officer u/s 143(3) of the Income-tax Act, 1961 is erroneous and prejudicial to the interests of revenue within the meaning of section 263 of the Income-tax Act, 1961 and hence the order passed by the Assessing Officer u/s 143(3) dated 23.12.2019 is hereby set aside to the above extent of observations at Para-4. The Assessing Officer is directed to make fresh assessment after giving an opportunity of being heard to the assessee and frame the assessment considering the facts as also conducting proper and meaningful inquiry on the issues as discussed in Para-4. 8. Being aggrieved by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essment proceedings with respect to the verification of cash deposits. It is a settled position of law that non-verification of the AO renders the assessment order as erroneous in so far prejudicial to the interest of revenue. In holding so, we draw support and guidance from judgment of Hon ble SUPREME COURT OF INDIA in the case of Malabar Industrial Co. Ltd. v. Commissioner of Income-tax reported in [2000] 109 Taxman 66 (SC) wherein it was held as under: In the instant case, the Commissioner noted that the ITO passed the order of nil assessment without application of mind. Indeed, the High Court recorded the finding that the ITO failed to apply his mind to the case in all perspective and the order passed by him was erroneous. It appear ..... X X X X Extracts X X X X X X X X Extracts X X X X
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