TaxTMI 
TaxTMI 
2019 (2) TMI 1770
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.... of "Deshna Constructions". The assessee filed its return of income for the assessment year 2011-12 on 27-03-2013 declaring total income of Rs. 1,96,000/-. The assessee returned his total income under the provisions of section 44AD of the Act. The case of assessee was selected for scrutiny under CASS. Consequently, mandatory notice u/s. 143(2) was issued to the assessee on 08-08-2013. During scrutiny assessment proceedings, the Assessing Officer observed that the assessee has purchased property worth Rs. 1.29 crores on 25-08-2010. The assessee was asked to explain the source of investment. The assessee furnished details of investment and also filed confirmations from the persons (unsecured creditors) from whom it had received various amount....
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....CIT has erred in concluding that the AO did not carried out enquiry/investigation in relation to unsecured loan, creditors balance etc. 3) The Learned Pr. CIT has erred in concluding that the veracity of the entries appearing in the constructed books of accounts (impounded u/s 131 during scrutiny proceedings) have not been examined by the AO. 4) The Learned Pr. CIT has erred in concluding that the assessment order passed by the AO is prejudicial to the interest of the revenue and is erroneous in the nature. 5) The Learned Pr. CIT has erred in concluding that no enquiry / investigation has been carried out by the AO in regard to the source of the investment in immovable property. 6) The Learned Pr. CIT has erred in ignoring the r....
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....ion along with profit and loss account for the Financial Year 2010-11 and Balance sheet as on 3103-2011. The assessee gave detailed information regarding the source of investments. The ld. AR pointed that all the communication between the assessee and Assessing Officer on various dates during assessment proceedings are at pages 24 to 73 of the paper book. The ld. AR further pointed that the assessee had summoned the creditors and their statements were recorded u/s. 131 of the Act. All the creditors supported the assessee and confirmed that the amounts have been paid by them. The statements of unsecured creditors i.e. Mrs. Aboli P. Shah, Mr. Veer Kumar J. Shah, Mr. Deepak Kumar J. Shah, Mr. Ajit Kumar J. Shah, Mrs. Reshma R. Shah and Mr. S....
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....1 Taxman 585 (Bom); ii. Span Overseas Ltd. Vs. Commissioner of Income Tax in ITA No. 1223/PN/2013 for assessment year 2008-09 decided on 21-12-2015; iii. Small Wonder Industries Vs. Commissioner of Income Tax in ITA No. 2464/Mum/2013 for assessment year 2009-10 decided on 24-02-2017; iv. Gehna Jewellers P. Ltd. Vs. Principal Commissioner of Income Tax in ITA No. 3530/Mum/2017 for assessment year 2012-13 decided on 22-11-2017. 5. On the other hand Ms. Nandita Kanchan representing the Department vehemently defended the order of Pr. Commissioner of Income Tax. The ld. DR submitted that the case of assessee was selected for scrutiny under CASS for the reason that there was "large investment in property as compared to total income". H....
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....22013. Thereafter, the Assessing Officer raised further specific queries regarding purchase of property and sought detailed explanation of the investments made. The copy of the said communication from Assessing Officer dated 20-12-2013 is at pages 25 to 27 of the paper book. The assessee vide communication dated 03-01-2014 (at pages 31 to 34 of the paper book) gave detailed reply to each of the queries raised by the Assessing Officer with respect to purchase of land, source of investments, etc. A perusal of the documents on record further reveal that the Assessing Officer had summoned unsecured creditors u/s. 131 of the Act and recorded their statements. The creditors appeared before the Assessing Officer and admitted to have advanced money....
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....Assessing Officer recorded the statements of unsecure creditors. No discrepancies in the statements made by the unsecured creditors and the explanation furnished by the assessee were pointed by the Assessing Officer at the time of assessment. It is evidently a case of change of opinion by the Assessing Officer which the Assessing Officer successfully substituted by initiating proposal for invoking provisions of section 263 of the Act. 10. It is a well settled law that for invoking the provisions of section 263 the Commissioner of Income Tax has to apply his independent mind after examining the records and has to form his independent opinion that the order passed by the Assessing Officer is erroneous and prejudicial to the revenue. The pro....