TaxTMI 
TaxTMI 
2021 (9) TMI 194
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....mstances of the case and in law, the ld PCIT has erred in giving direction u/s 263 to set aside the reassessment order u/s 147 rws 143(3) dt. 5-12-18 to verify the source of cash deposits into bank & to conduct necessary enquiry; while the alleged reopening of assessment u/s 147/148 is invalid, bad in law & without jurisdiction and thus, an invalid order u/s 147 cannot be subjected to revision u/s 263; hence, impugned order u/s 263 dt.9-3-21 is also invalid, bad in law & is liable to be quashed. (2) On the facts and circumstances of the case and in law, the ld PCIT has erred in giving direction u/s 263 of the income-tax Act 1961 ('the Act" for short) to set aside the order u/s 147 rws 143(3) dt. 5-12-18, when the assessee has duly ....
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.... income declaring income of Rs. 3,19,570/- . The assessee offered income under section 44AE and 44AD of the Act. The Assessing Officer after serving notice under section 143(2) proceeded for assessment. The assessee was confronted with the deposit in the bank account. In response to said show-cause notice the assessee field his written reply and stated that he is engaged in supply of brick, sand (sand stone chips) and other building material. The assessee also owned two mini trucks. The main source of assessee's income for transportation and retail sell of building material. The assessee is not required to maintain books of account. The Assessing Officer after taking into consideration reply and other material accepted the return of income ....
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....es vide order dated 09.03.2021 passed under section 263 of the Act. Aggrieved, assessee has field present appeal before the Tribunal. 4. We have heard the rival submissions of ld. Authorized Representative (AR) for the assessee and the ld. Departmental Representative CIT-(DR) for the Revenue. The Ld. AR of the assessee submits that no return of income was filed by assessee for the year under consideration. The return of income was filed in response to notice issued under section 148 of the Act on 03.02.2018 declaring income of Rs. 3.19 lakhs. Thereafter assessment was completed under section 147 r.w.s 143(3) of the Act on 05.12.2018 accepting return of income declared by the assessee. Thereafter ld PCIT issued show-cause notice under sec....
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....tion about the bank deposits. The Assessing Officer verified and examined all cash deposits. The Assessing Officer only after considering and satisfying himself accepted the return of income. The Assessing Officer applied his mind made adequate enquiry on the issue of cash deposits and took the reasonable and possible view which is tenable as per law and correct application of facts. 5. Ld. PCIT has not given any finding as to how the assessment order is erroneous. The PCIT himself has accepted that the Assessing Officer during assessment asked the assessee about the alleged cash deposits of Rs. 28.48 lakhs, which makes the facts clear that Assessing Officer conducted adequate enquiry. The conclusion arrived by Ld. PCIT that Assessing Of....
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....ue supported the order of Ld. PCIT. Ld. CIT-DR for the Revenue further submits that the assessment order is silent about the various enquiries conducted by the Assessing Officer. The Assessing Officer accepted the return of income declared by the assessee, without discussing the issues at length. 7. We have considered the rival submission of both the parties and gone through the orders of authorities below. We find that the case of assessee was re-opened on the basis of information received by the Assessing Officer that the assessee has made cash deposits in his bank account. The Assessing Officer issued show-cause notice under section 148 of the Act on 20.02.2018. In response to notice under section 148 of the Act, the assessee filed hi....
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.... ground for taking action under section 263 of the Act. Admittedly, this case is not case of complete lack of enquiry. As noted above, the Assessing Officer during the assessment proceedings required the assessee to furnish detail income tax return, computation of income, details of bank statement and the reply of questionnaire raised to assessee about the source of deposits. Before us the Ld. AR of the assessee vehemently submitted that assessee's declared income of Rs. 1.80 lakh from business of transportation under section 44AE and Rs. 1.39 lakh from trading in building material respectively (being @ 8% of total turnover of Rs. 17.44 lakh). To support his contention, the assessee filed balance-sheet, trading of profit and loss account as....