2017 (3) TMI 188

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....his appeal by the assessee is directed against order of Ld. CIT dated 24/3/2014, and pertains to assessment year 2011- 12. 2. The grounds of appeal read as under; 1. On the facts and in the circumstances of the case the Ld. CIT erred in passing an order u/s. 263 of the I.T. Act, 1961 setting aside the order passed by the Learned I.T.O. Ward 1(3) Kalyan u/s. 143(3) since the said order ....

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....is appeal. 3. In this case Ld. CIT has passed following order u/s. 263 of the IT Act. "1. In this case, the assessee filed Return of Income for the A.Y. 2009-10 on 07-08-2009 declaring total income of Rs. 2,25,036/- after claiming deduction of Rs. 1,00,000/- u/s. 80C of the I.T. Act. The assessee is doing a business of sates and purchase of sarees, dress materials and clothes. The case....

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....re. In view of the above the A.O. should have disallowed the cash expenditure of Rs. 15,55,000/-. 3. The above omissions, on the part of Assessing Officer rendered the Assessment order erroneous and prejudicial to the interest of revenue. Accordingly, a notice ti/s. 263 dated 06/11/2013 was issued which was duly served on the assessee. 4. In response to the above show cause notic....

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....er of the AO passed u/s 143(3) on 28.12.2011, with a direction to redo the assessment de novo after affording adequate opportunity to the assessee." 4. Against the above order assessee is an appeal before us. We have heard both the counsel and perused the record. We find that in this case Ld. CIT has noted that a total of Rs. 15,55,000/- were paid in violation of section 40A (3), being payment ....