TaxTMI 
TaxTMI 
2010 (11) TMI 531
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....cause notice to the assessee on 4th September 2008, pointing out that the assessment order was prima-facie prejudicial to the interests of Revenue on account of the reasons that - (i) the claim of gifts of Rs.8,83,700 was not true and, therefore, required further scrutiny and disallowance; (ii) the Assessing Officer, with regard to unsecured loans to the extent of Rs.45,66,000, could not verify this aspect and made necessary additions in respect of unproved sundry creditors and certain consequential cash credit to the extent of Rs.21,41,000. The learned CIT, after considering the assessee's reply dated 13th October 2008, further made inquiries vide his letter dated 13th October 2008, to which the assessee filed his detailed reply on 27th October 2008. After considering the assessee's reply, the learned CIT passed his order under section 263 on 14th November 2008, directing the Assessing Officer to make additions with regard to certain items and to make further inquiries with regard to other items. The assessee, being aggrieved by the order passed by the learned CIT, is in appeal before the Tribunal. 4. Learned Counsel for the assessee, before us, referred to Page-57 of the ....
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....e has no child. He referred to declaration of gift contained at Page-47 of the paper book which was filed before the Assessing Officer also. As regards other three gifts, learned Counsel referred to Pages-43 and 43A of the paper book, wherein, the photocopy of three demand drafts received from Shri Mufti Barkatulla, s/o Shri Abdul Qadir, are detailed as under:- Demand Draft No. Date Amount (Rs.) 317514 10.5.2004 1,59,500 317472 5.5.2004 1,60,000 317586 26.5.2004 1,64,200 7. Learned Counsel referred to the bank statement at Page-43 of the paper book, wherein, these demand drafts have been credited. He submitted that these are well known persons and there is no doubt on their identity, creditworthiness and genuineness of transactions. He further referred to Pages-34 to 36 of the paper book, wherein, the assessee's submissions made before the Assessing Officer are contained. He further referred to Pages-37 to 41 of the paper book, wherein, the declaration of gift is contained and also Pages-44 to 47, wherein, the affidavit of the donor is contained confirming three demand drafts given as gift to the assessee. With reference to all the above documents, learned Counsel sub....
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....ead in conjunction with an erroneous order passed by the Assessing Officer. Every loss of Revenue as a consequence of an order passed by the Assessing Officer cannot be treated as prejudicial to the interests of the Revenue. 10. The Hon'ble Rajasthan High Court in CIT v/s Ganpat Ram Bishnoi, (2008) 296 ITR 292 (Raj.), has, inter-alia, observed jurisdiction under section 263 cannot be invoked for making short enquiries or to go into the process of assessment again and again merely on the basis that more enquiry ought to have been conducted to find something. It was, inter-alia, held that when an enquiry had been conducted and the Assessing Officer had reached to a particular conclusion, though reference to such enquiries had not been made in the order of the assessment, it was apparent from the record that without anything to show as to how and why the enquiry conducted by the Assessing Officer was not in accordance with law, the invocation of jurisdiction by the Commissioner was unsustained. 11. Learned Counsel submitted that in order to verify as to whether the Assessing Officer had actually conducted the enquiries or not, the assessment records may be verified. In....
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....s DCIT, (2004) 87 TTJ (Del.) 93, the Tribunal held that the Commissioner of Income Tax does not have unrestricted and unflattered powers to set aside the order modifying an assessment merely on the basis of difference of opinion. Commissioner of Income Tax cannot invoke jurisdiction under section 263 merely because he feels that a particular line of investigation which would have been effective and useful for the Revenue had not been adopted by the Assessing Officer. 16. Learned Counsel further submitted that in the tax audit report of the assessee the capital account had been enclosed which is contained at Page-5 of the paper book in which the gifts received by the assessee were duly reflected. Thus, in sub and substance, learned Counsel submitted that since the assessment order had been passed after making due enquiry, then merely because the Commissioner of Income Tax considered a different line of enquiry to be more useful to the Revenue, could not render the assessment order as erroneous and, hence, the invocation of jurisdiction under section 263 was not in accordance with law. 17. Learned Departmental Representative, on the other hand, relied on the order of ....