TMI Blog2023 (12) TMI 976X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee also produced the bank statement of the above account, during the demonetization period. Perusal of the same clearly shows that there were no cash transaction in the above current account as alleged by the Ld. PCIT, whereas the entire transactions were done through either cheque or NEFT mode. So the very basis of invoking 263 on the ground that the cash deposits in HDFC Bank itself, is baseless. AO has made detailed enquiry before passing the assessment order on the cash transaction during the demonetization period. PCIT partially looking into the assessment records and initiated the Revision proceedings on the ground that the assessee failed to submit evidences in support of the cash deposits, which is factually incorrect. PCIT failed to consider the other reply letters filed by the assessee. Unless both the ingredients i.e order must be erroneous in nature; and the error must be such that it is prejudicial to the interest of Revenue are present in a given case, it is not legally permissible for a Commissioner to initiate suo motu proceeding under section 263 of the Act, the same has been upheld by Hon'ble Supreme Court in case of Malabar Industrial Co. Ltd[ 20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... zation period, which is an erroneous order and prejudicial to the interest of Revenue. Therefore the Ld. PCIT invoking provision u/s. 263 of the Act by giving show cause to the assessee why not to revise the assessment. 4. The assessee vide its letter dated 20.01.2022 replied as follows: With reference to, above captioned subject, we would like to under... 1. During FY 2016-17, on 08/11/2016 we have opening balance of cash Rs. 2,63,38,644.00 2. Out of the above cash balance, we have deposited cash on different dates and our bank accounts as below... Date of Deposit Cash Deposited SBN Note Cash Deposited Bank 10/11/2016 81,00,00.00 81,00,00.00 ICICI BANK 11/11/2016 75,00,000.00 75,00,000.00 ICICI BANK 11/11/2016 16,92,130.00 16,92,130.00 ICICI BANK 12/11/2016 39,03,000.00 39,03,000.00 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... following Grounds of Appeal: 1. On the facts and in the circumstances of the case as well as law on the subject, the learned Principal Commissioner of the Income Tax has grievously erred in initiating the proceedings u/s 263 of the Act, 1961. 2. On the facts and in the circumstances of the case as well as law on the subject. The learned Principal Commissioner of Income Tax has grievously erred in holding that the assessing Officer had not verified the properly transaction of cash deposition of SBN made during demonetization period during the course of proceeding and not made proper inquiry or verification finalized the order of assessment u/s. 143(3) of the I.T. Act is contrary to the fact of the case. 3. On the facts and in the circumstances of the case as well as law on the subject, the entire proceedings u/s 263 are bad-in-law and invalid as assessment order u/s. 143(3) of the Act for the same year were framed, wherein Learned A O has made detailed inquiry by issuing various notices on different dates as per verification checklist for assistance of AOs for framing assessment in demonetization related cases as per internal guidance note issued by CBDT. The learned ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mber 2016 in old 500 and 1000 Rupees notes Total cash deposit from 9th November 2016 in other currency/notes Total cash deposit from 9th November 2016 to 3 1 st December (4+5) 1 RNSBBANK, BEDIPARA BRANCH, RAJKOT 14006700001009 50,00,000.00 - 50,00,000.00 2 ICICI BANK, JAI HIND BARANCH, RAJKOT 015305010291 2,11,95,000.00 17,00,130.00 2,28,95,130.00 5. Details of Cash in Hand (Notice Point No. 11(6)): We herewith submit details of Cash ledger as per your requirement for your ready reference. 6. Details of Online Response of Cash Deposited (Notice Point No. 11(7)): We herewith submit details of Online Response of Cash Deposited during Demonetization as per your requirement for your ready reference. 7. Details of Other Supporting Documents (Notice Point No. 11(8)): We herewith submit Certificate from Bank for Cash Deposited during Demonetization in OHD Notes as per your requirem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... considered opinion, the Assessing Officer has made necessary enquiries before passing the assessment order. The other contention of the Ld. PCIT that the A.O. failed to verify the cash deposits in HDFC Account No. 16972320000155 of Rs. 7,16,001/-. The assessee also produced the bank statement of the above account, during the demonetization period. Perusal of the same clearly shows that there were no cash transaction in the above current account as alleged by the Ld. PCIT, whereas the entire transactions were done through either cheque or NEFT mode. So the very basis of invoking 263 on the ground that the cash deposits in HDFC Bank itself, is baseless. Further the Assessing Officer has made detailed enquiry before passing the assessment order on the cash transaction during the demonetization period. 9.1. Further in our considered view, the Ld. PCIT partially looking into the assessment records and initiated the Revision proceedings on the ground that the assessee failed to submit evidences in support of the cash deposits, which is factually incorrect. The Ld. PCIT failed to consider the other reply letters dated 22.10.2019, 12.12.2019 and 24.12.2019 filed by the assessee. Unless ..... X X X X Extracts X X X X X X X X Extracts X X X X
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