TaxTMI 
TaxTMI 
2020 (1) TMI 1395
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....T has erred in law and on facts in assuming jurisdiction u/s 263 of Income Tax Act, 1961. 2. That having regard to facts & circumstances of the case, Ld. Pr. CIT has erred in law and on facts in cancelling the assessment order passed by Ld. AO to the extent of alleged unexplained cash deposits in the bank account and that too by recording incorrect facts and findings and without observing the principles of natural justice. 3. That having regard to facts & circumstances of the case, Ld. Pr. CIT has erred in law and on facts in holding the assessment order passed u/s 153A/143(3) is erroneous and prejudicial to the interest of revenue. 4. That having regard to facts & circumstances of the case, Ld. Pr. CIT has erred in law and on facts i....
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....der dated 11.10.2017 directed the Assessing Officer to decide the issue afresh and pass the speaking order. 4. Being aggrieved by the order u/s 263 passed by the Pr. CIT, the assessee filed present appeal before us. 6. The Ld. AR submitted that during the relevant assessment year, the assessee made cash business sales which are duly accounted, incorporated in the books of accounts and included in the income offered for the tax thereon. Moreover VAT was also duly charged on these cash sales and deposited with the government at the prescribed rate. The Ld. AR submitted that the cash received from these sales were deposited by the assessee in his bank account. This fact along with cash book, sales register, cash invoices, VAT returns and ban....
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.... that the assessee also provided copy of cash book maintained by assessee showing all the cash transaction of assessee whether it was cash sales or deposit of such cash in the bank account. Every cash transaction has been passed through the cash books and has been accounted for. The sales register were filed before the Assessing Officer being the part of assessee's books of accounts showing the sales made by assessee in both cash and account channel aggregating to Rs. 35,06,28,560/- which was duly recorded in profit and loss account after adjustments. The invoices for the sale made in cash was also recorded in the books of accounts and was produced before the Assessing Officer which was after careful examination by the Assessing Officer was....
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.... detailed explanation with evidences was submitted and thereafter Assessing Officer considered all the submission as is evident from the plain reading of assessment order. The Ld. AR relied upon the decision of the Hon'ble Supreme Court in case of CIT vs. Max India Ltd 295 ITR 282, Malabar Industrial Co. Ltd. vs. CIT 243 ITR 83. The Ld. AR also relied upon the decision of the Jurisdictional High Court in case of CIT vs. Sunbeam Auto Ltd. 332 ITR 167 and ITO vs. DG Housing Projects Ltd. (2012) 74 DTR 153. 7. The Ld. DR relied upon the order of the Pr. CIT and further submitted that there is no enquiry made by the Assessing Officer as to the cash deposits and the Pr. CIT rightly directed the Assessing Officer to pass speaking order. The Ld. ....
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....e. There was no material brought by the Pr. CIT stating therein that the Assessment Order is passed allowing any relief without inquiring into the claim of the assessee. Thus, the Pr. CIT has only expressed the different view which is not permissible under Section 263 of the Act. Revisionary power u/s 263 of the Act is conferred by the Act on the Commissioner when an order is passed by the Authority is erroneous and prejudicial to the interest of the Revenue. Orders which are passed without inquiry or investigation are treated as erroneous and prejudicial to the interest of the Revenue, but which are passed after inquiry/investigation on the question/issue are not per se are normally treated as erroneous and prejudicial to the interest of t....