TMI Blog2023 (11) TMI 585X X X X Extracts X X X X X X X X Extracts X X X X ..... examined this issue in detail during the original assessment proceedings and had made due inquiries and detailed analysis of the material available on record in respect of transactions which was the subject matter of revision in 263 proceedings. AO on the basis of discussion with partner of National Shroff (Angadia), concluded that the amount in question represented cash sales/out of book sales carried out by the assessee during the year under consideration. Accordingly, the AO calculated the GP rate @ 19.40% on the aforesaid cash sales. Thus AO had examined the issue in detail during the course of original assessment proceedings and also had taken a view which was a legally plausible view. We are unable to accept the proposition t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2. The assessee has taken the following grounds of appeal:- 1. The Ld. PCIT erred in invoking the provisions of S.263 as the A.O. had inquired in to the taxing of cash deposits with angadia amounting to Rs. 12180000/-, applied his mind and allowed the deduction. The order u/s. 143 (3) dated 09.12.2019 is neither erroneous in so far as prejudicial to interest of revenue. The order u/s. 143 (3) is prayed for restoration and quash the order u/s. 263. 2. The Ld. PCIT has erred in not accepting the plea of the appellant that the Ld. A.O. had applied his mind on the issue of information with regards to cash of Rs. 12180000/- which evident from the notice u/s. 142 (1) dated 31.08.19 at Point No. 7 of the Annexure. At Para-3 of the ord ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Assessing Officer and submitted vouchers in support of the transactions carried out by the assessee with National Shroff. On verification of the copies of the vouchers, the Assessing Officer noticed that amounts in cash on various dates have been received by the assessee through National Shroff during the year. Shri Anirudh J. Solanki, partner of National Shroff stated before the Assessing Officer that the said amount of cash as reflected in the various vouchers on various dates during the impugned assessment year has been received by the assessee against the cash sales carried out by the assessee during the year. Accordingly, the Assessing Officer was of the view that the Department had concrete evidence to the effect that the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er the assessee has proved that those were not the financial transactions but were commodity trade transactions nor the Assessing Officer has examined the nature of transactions and similarly accepted the commodity trade turnover when there was no material on record to make such assumptions. Accordingly, the PCIT was of the view that the Assessing Officer had incorrectly applying the provisions of law while completing the original assessment. In absence of satisfactory explanation, the PCIT held that the Assessing Officer ought to have considered the total amount as unexplained cash transactions and the aforesaid transactions amount should have been taxed u/s. 115BBEE of the Act. Accordingly, the Ld. PCIT set aside the assessment as erroneo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd perused the material available on record. We observe that the issue under consideration had been examined by the Assessing Officer during the course of original assessment proceedings, wherein notices u/s. 133(6) of the Act was issued to the partner of M/s. National Shroff, Rajkot. On the basis of disclosures made by the partner of National Shroff and the documents analysed by the Assessing Officer, the Assessing Officer was of the view that the aforesaid amount represented unaccounted cash sales of the assessee during the impugned year under consideration. Further, the Assessing Officer observed that the GP rate of assessee s business was declared @ 19.40% and accordingly, the Assessing Officer applied the aforesaid rate of 19.40% to th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at the entire explained cash transaction should be brought to tax in the hands of the assessee, since it is a settled principle of law only the real income may be subject to tax in the hands of the assessee and nor the entire receipts. Accordingly, the ld. Assessing Officer not erred in applying the GP rate of 19.40% after holding that the aforesaid sum represented unaccounted cash sales of assessee. Therefore, we are of the view that the Assessing Officer took one of plausible/possible view looking into the instant facts of the case and the ld. PCIT cannot take recourse to proceedings u/s. 263 of the Act only with a view to supplant/substitute his own view with that of the Assessing Officer on the ground that alternate view should have b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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