TaxTMI 
TaxTMI 
2012 (6) TMI 565
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....vey u/s 133A of the Act was conducted at the business premises of the assessee on 11.3.2005. Consequent upon the survey, the assessee filed his return of income for assessment year 2005-06 on 27.1.2006 admitting total income of Rs. 88,776/-. The Assessing Officer completed the assessment u/s 143(3) on 28.12.2007 at a total income of Rs. 8,45,670/-. Subsequently, the ld. CIT called for the records of this case and found that the assessee had received cash deposits and also made payments in cash to various parties totaling to Rs. 9,30,000/-. The Assessing Officer had issued notice calling for the details of these amounts and the assessee had complied with by filing the confirmatory letters from different creditors. On the basis of the decisio....
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....tion of Rs. 9,30,000/- as unexplained cash credit inasmuch as the assessee has duly submitted all required explanations with the Assessing Officer who has completed the assessment after verifying the facts. 3. The Commissioner of Income-tax ought to have considered the fact that the parties from whom cash credits have been taken have filed their return of income and are duly assessed to income tax and inasmuch as their identity, creditworthiness and genuineness of the transactions have been proved, the Commissioner of Income-tax should not have reopened the proceedings by his order under section 263 of the Act. For these reasons and for any other reasons that may be adduced at the time of hearing, it is prayed that the Hon'ble Tribuna....
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....to the interests of the Revenue, the CIT is empowered to pass an order as the circumstances of the case may warrant. He may pass an order enhancing the assessment or he may modify the assessment. He is also empowered to cancel the assessment and direct to frame a fresh assessment. He is empowered to take recourse to any of the three courses indicated in section 263. So, it is clear that the CIT does not have unfettered and unchequred discretion to revise an order. The CIT is required to exercise revisional power within the bounds of the law and has to satisfy the need of fairness in administrative action and fair play with due respect to the principle of audi alteram partem as envisaged in the Constitution of India as well in section 263. A....
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.... taken one view under with which the CIT does not agree, it cannot be treated as an erroneous order, unless the view taken by the Assessing Officer is unsustainable under the law. (vi) If while making the assessment, the Assessing Officer examines the accounts, makes enquiries, applies his mind to the facts and circumstances of the case and determines the income, the CIT, while exercising his power under section 263, is not permitted to substitute his estimate of income in place of the income estimated by the Assessing Officer. (vii) The Assessing Officer exercise quasi-judicial power vested in him and if he exercise such power in accordance with law and arrives as a conclusion, such conclusion cannot be termed to be erroneous simply ....
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.... come to a conscious decision, section 263 does not vest the CIT with the powers of an appellate authority. The powers of revision are different from re-assessment powers where any escapement of income can be brought to tax. It is the satisfaction of the Assessing Officer which matters in re-assessment proceedings and not that of the ld. CIT although the higher authorities in hierarchy of administration may be treated as co-terminus with that the Assessing Officer; but the satisfaction has always to be that of the Assessing Officer and that actually which matters. The Assessing Officer has taken a view on particular set of facts and the ld. CIT has also mentioned this fact in so many words in the second para of his order that the Assessing ....