2017 (5) TMI 635

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.... infirmity as it is based on perverse findings and therefore, void ab-initio. 2. That in the facts and circumstances of the case, the order passed by Ld. CIT u/s 263 is bad in law and on facts and is liable to be quashed. 3. That the order of Ld. CIT failed to establish the presence of twin conditions for invoking action u/s 263 of the income tax act, 1961." 3. The brief facts of the case are as follows: The assessee is a firm. It is engaged in the business of sales of mobile, sims, recharges etc. For the Assessment Year 2011-12, the return of income was filed on 25.09.2010 declaring total income of Rs. 3,30,390/-. The assessment was completed vide order dated 23.01.2013 u/s 143(3) of the Income Tax Act, 1961 on a to....

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....the assessee submitted that the Assessing Officer had called for the ledger account of Baba Hardasmal Communication Pvt. Ltd., in the course of assessment proceeding and after due deliberation, no disallowance was made u/s 40A(3) of the Act, hence, it was submitted, invocation of revisionary power u/s 263 of the Act is without any legal basis. The assessee for the above submission relied on the judgment of the Delhi High Court in the case of CIT Vs. Vikas Polymers reported in 341 ITR 537 (Delhi HC). It was further submitted that subsequent to the assessment proceeding u/s 143(3) of the Act, in response to the Assessing Officer's letter dated 19.05.2015, assessee had filed detailed confirmation from Baba Hardasmal Communication Pvt. Ltd. And....

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....nt exceeding Rs. 20,000/- per day to the above mentioned party. This contention of the assessee is not correct, since the cash book of the assessee on day to day basis will have a mismatch. According to us, this plea of the assessee is only an afterthought to get over the provision of Section 40A(3) of the Act. 6.1 Moreover, we noticed that the Assessing Officer in the order passed u/s 143(3) of the Act has not considered the issue of cash payment exceeding Rs. 20,000/- and the invocation of provision of Section 40A(3) of the Act. We have perused the paper book filed by the assessee wherein the questionnaire of the Assessing Officer to the assessee in course of assessment proceedings is produced at pages 36 to 38. The questionnaire does ....