TaxTMI 
TaxTMI 
2010 (1) TMI 864
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....d a detailed questionnaire u/s 142(1) of the Act. He has examined all the aspects relatable to the asstt. of assessee's income and called for relevant informations. After a long discussion in the asstt. proceeding he accepted the return of income at Rs.1,95,500/- vide an asstt. order dated 31st March, 2006 passed u/s 143 (3) of the Act. 3. Ld. Commissioner on an analysis of assessee's pedigree observed that assessee is son of late Shri Suraj Prakash Jain who expired in 1995. In his family he has three brothers their wives, his mother and five children. One son and one daughter to his brother Shri Deepak Kumar Jain one son to his brother Shri Pawan Kumar Jain and two sons to the assessee. The department came to know that gifts of Rs.42 lacs have been received by the wives of two brothers Smt. Arti Jain Rs.16 lacs (2002-03), Smt. Arti Jain Rs.10 lacs (2003-04) Smt. Alka Jain Rs.16 lacs (2002-03). According to the Ld. Commissioner on an inquiry made by the Income Tax Department in respect of these gifts the assessee were unable to produce the donors or the persons from whose bank accounts the drafts were issued. On an analysis of this family history the Ld. Commissioner form....
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....ed every information which has been highlighted by the Ld. CIT in the order u/s 263. The assessee has supplied those information to the AO. He has produced the alleged creditor as well as donor before the AO. Their statements were recorded and thereafter AO has accepted the capital account as well as the liability of loan shown by him in the accounts. It is not a case where AO has not made any inquiry. The Ld. Commissioner appears to have been swayed away from the outcome of other asstt. orders in the case of other assessee of assessee's family members. According to the Ld. Commissioner in the case of Smt. Arti Jain loan made by Vishnu Kumar Jain was treated as a bogus by the AO and if that be the case then how it can be accepted in the assessee's case. According to the Ld. Counsel for the assessee it is the quality of evidence produced by any assessee during the asstt. proceedings which would enable an AO to decide the issue in that assessment proceeding. He further pointed out that Ld. Commissioner has based his finding on inferences. He nowhere established how the order of the AO is erroneous. He is supposed to indicate the fulfillment of both the conditions i.e. erroneous of th....
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....being erroneous. (iv) If the order is passed without application of mind, such order will fall under the category of erroneous order. (v) Every loss of revenue cannot be treated as prejudicial to the interests of the Revenue and if the AO has adopted one of the courses permissible under law or where two views are possible and the AO has taken one view with which the CIT does not agree, if cannot be treated as an erroneous order, unloss the view taken by the AO is unsustainable under law. (vi) If while making the assessment, the AO examines the accounts, makes enquiries, applies his mind to the facts and circumstances of the case and determine the income, the CIT, while exercising his power under s. 263 is not permitted to substitute his estimate of income in place of the income estimated by the AO. (vii) The AO exercises quasi-judicial power vested in his and if the exercises such power in accordance with law and arrive at a conclusion, such conclusion cannot be termed to be erroneous simply because the CIT does not feel satisfied with the conclusion. (viii) The CIT, before exercising his jurisdiction under s. 263 must have material....
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....005 20.09.2005 Record of the case received from I.T.O 2 (3), Meerut in view of Ld. CIT's order no. 2886 dated 08.09.2005 u/s 127 (1) of the I.Tax Act. Issued notice u/s 143(2) and 142(1) for 27.09.2005. 27.09.2005 none attended 29.11.2005 Notice u/s 142(1), Notice issued and fixed on 13.12.2005. SHRI SANJAY KUMAR JAIN, A.Y. 2003-04 ORDER SHEET 13-12-2005 On written request, Adjourn to 22.12.2005 ITO 22-12-2005 Shri R.K. Garg Advocate attended and requested for adjournment. Discussed and he is asked to file the required details/documents without fails. Alos notice u/s 131 issued to the assessee for 03-01-2006. 26-12-2005 Letter issued to Manager B.O.B., Abu Lane of B.O.B., Abu Lane, Meerut. 03-01-2006 Shri R K Garg Advocate attended and filed written request. Discussed He is requested to file the required/documents without further delay and also please explain the credit/debit entries exceeding Rs.1 Lac of S/B A/c No.528692 of B.O.B. Abu Lane, Meerut for Pd. 01-04-2002 to 31-03-2003 and S/B A/c No.559920 of Master V....