TMI Blog2023 (9) TMI 99X X X X Extracts X X X X X X X X Extracts X X X X ..... unt, however, the assessee has neither shown such investment in the balance sheet under the head investment , nor has withdrawn the same for investment. Assessee has shown only an amount from the capital account towards drawings which he is trying to explain the source of investment - AO has completely lost his sight while accepting the explanation given by the assessee towards source of investment which not only made the assessment order erroneous but also is prejudicial to the interest of the Revenue. Under these circumstances, the order passed by the Pr. CIT cancelling the assessment order passed u/s 143(3), in our opinion, is fully justified. Decided against assessee. - SHRI R.K. PANDA, VICE-PRESIDENT AND SHRI LALIET KUMAR, JUDI ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed the Assessing Officer through letter dated 9.7.2018 to treat the return filed on 25.5.2018 as the return filed in response to notice u/s 148 of the I.T. Act. The Assessing Officer thereafter issued statutory notices u/s 143(2) and 142(1) to which the AR of the assessee appeared before the Assessing Officer from time to time and filed certain details. The Assessing Officer completed the assessment u/s 143(3) r.w.s. 147 on 27.07.2018 determining the total income of the assessee at Rs. 44,36,504/- by making addition of Rs.54,458/- being disallowances of expenses @ 5% and Rs. 19,266/- being the difference in 26AS. 5. Subsequently, the learned PCIT examined the record and noted that as per Form 26AS, the assessee has made an investment of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessment order. Referring to page 15 of the Paper Book, he drew the attention of the Bench to the capital account wherein an amount of Rs. 24,92,669/- has been shown as drawings. Referring to the copies of the Bank accounts maintained with ICICI Bank and City Bank, copies of which are placed at pages 19 to 47 of the Paper Book, he submitted that all the investments are through proper banking channel and there is no cash deposit in the bank account. He submitted that Form 26AS was filed before the Assessing Officer and after examining the same, the Assessing Officer has made the addition of Rs. 19,266/- on account of difference in 26AS. Referring to the statement of TDS reconciliation filed with the Assessing Officer and the statement ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e learned PCIT was fully justified in setting aside the assessment order passed by the Assessing Officer. 9. So far as the decisions relied on by the learned Counsel for the assessee are concerned, she submitted that these decisions are distinguishable and not applicable to the facts of the present case since in the instant case it is apparent from the order itself that the Assessing Officer failed to make any inquiry regarding the source of investment of Rs. 54,30,000/- in mutual funds. 10. We have heard the rival arguments made by both the sides and perused the record. We find the assessee filed the return of income declaring taxable income of Rs. 43,59,780/- and the Assessing Officer completed the assessment determining the total i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e are distinguishable and not applicable to the facts of the present case. In the case of Infinity Infotech Park Ltd vs. DCIT (Supra), the Tribunal has held that a case of lack of inquiry would by itself render the order being erroneous and prejudicial to the interest of the Revenue. It has been held that where there is inquiry by the Assessing Officer, even if inadequate, the CIT would not be entitled to revise u/s 263 on the ground that he has a different opinion in the matter. Further, in a case where the Assessing Officer has made a wrong opinion or finding on merits, the CIT has to come to the conclusion and himself decide that the order is erroneous by conducting necessary enquiry before passing the order u/s 263. However, in the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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