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TMI Blog2023 (10) TMI 1064X X X X Extracts X X X X X X X X Extracts X X X X ..... justified in quashing the order u/s. 263 of the Income Tax Act of Ld. PCIT when Explanation 2 of Section 263 of the Act expressly provides that it is final opinion of the Ld. PCIT to deem an order prejudicial and erroneous to the interest of revenue? (ii) Whether the Hon'ble Tribunal was justified in quashing the order u/s. 263 of the Income Tax Act of Ld. PCIT observing that the A.O has made enquiries and relying upon material placed on record accepted the genuineness of transactions of aggregate case of Rs. 27,00,000/- deposited by the assessee in his bank accounts during the demonetization period? (iii) Whether the Hon'ble Tribunal was justified n quashing the order u/s. 263 of the Income Tax Act of Ld. PCIT, especially when the As ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... revisional authority that in failing to examine and compare the figures of cash deposits made by the assessee in the corresponding period of the preceding year, to judge the genuineness of the cash deposits, the Assessing Officer ought to have compared the figures of the cash deposits made in the demonetization period with the rest period of the year under consideration. 3.2 On the respondent carrying the matter further in appeal to the Income Tax Appellate Tribunal, the Tribunal, after examining the question of law and referring to various decisions on the scope of inquiry under Sec. 263(A) of the Act, held as under: "6.9 Now coming to the facts before us, from the records we observe that the issue regarding the cash deposited by the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot a case where no enquiry has been made by the Assessing Officer during the course of assessment proceedings. In our view, Pr.CIT has incorrectly observed in the instant facts that the Ld. AO failed to apply his mind to the issues on hand or he had omitted to make enquiries altogether or had taken a view which was not legally plausible in the instant facts. As held by various Courts, Principal CIT cannot in 263 proceedings set aside an assessment order merely because he has different opinion in the matter. In our view, s .263 of the Act does not visualize a case of substitution of the judgment of the Principal CIT for that of the Assessing Officer who passed the order unless the decision is held to be wholly erroneous. As noted in various ..... X X X X Extracts X X X X X X X X Extracts X X X X
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