TaxTMI 
TaxTMI 
2021 (9) TMI 1211
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.... relevant previous year. The assessee filed return of income for Assessment Year 2015-16 on 13.08.2015 declaring total income of Rs. 50,72,900/-. The case of the assessee was picked up for limited scrutiny viz., for the purpose of verifying large cash deposits in savings bank account and with regard to transfer of property during the previous year. The AO issued a notice dated 29.07.2016 under section 143(2) of the Act wherein he called for details with regard to the return of income filed by the assessee. The assessee in a letter dated 21.07.2017 submitted a reply with regard to properties purchased by the Assessee pointing out that during the FY 2014-15, assessee had purchased land measuring 107.65 cents bearing Sy. No. 59/11, 59/17 & 59/....
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....k 1,00,000 Out of cash withdrawal made dated 09-10-2014 29-10-2014 Vijaya Bank 50,000 Out of rent received 24-12-2014 IDBI Bank 1,00,000 Out of cash withdrawal made dated 09-10-2014 31-12-2014 Vijaya Bank 13,500 Out of rent received 02-01-2015 IDBI Bank 97,000 Out of rent received and cash withdrawal dated 30-12-2014 31-01-2015 Vijaya Bank 30,000 Out of rent received 12-02-2015 IDBI Bank 1,00,000 Out of rent received and cash withdrawal 31-03-2015 IDBI Bank 1,00,000 Out of rent received and cash in hand TOTAL 37,60,800 3. The AO passed an Order of Assessment under section 143(3) of the Act dated 04.08.2017 in which he made the fol....
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....er such sums will not be available for further deposit in the bank account are not dealt in detail in the Assessment order. In short, the sources for cash deposits in savings bank account has not been subjected to thorough verification and hence CASS has not been examined properly. Further, the statement of affairs as on 31.03.2014 and 31.03.2015 were not obtained and analysed to verify the availability of funds for the purchase of property purchased on 09.06.2014. 5. By letter dated 12.11.2018, the Assessee submitted that during the course of assessment proceedings, upon submission of the details, documents, information and clarifications called upon by the AO, we were asked to explain how the cash cheques were to be regarded as cash wi....
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.... on this issue as to why he accepted the claim of the assessee. Reliance is placed on the jurisdictional High Court Order in the case of Infosys Technologies Limited [17 Taxmann.com 283 (Karnataka)] for the proposition that every conclusion and finding by the assessing authority should be supported by reason however brief it may be. Thus an Order passed without making necessary inquiries or verifications, is erroneous and prejudicial to the interest of the Revenue in terms of Sec. 263 of the IT Act." 7. The CIT finally gave the following directions: "18. in view of the above facts, I hold that the Assessment Order u/s. 143(3) of the Income Tax Act 1961, dated 04.08.2017 is erroneous in so far as it is prejudicial to the Revenue.....
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....make the order erroneous when the issues were indeed looked into. The entire details were filed and the order itself indicates that it can be inferred that the Assessing Officer not only made enquiries, but satisfied himself with the assessee's replies furnished from time to time in support of its stand. However, we find that the Hon'ble Karnataka High Court in the case of CIT Vs. Infosys Technologies Ltd., in ITA No. 588/2006 judgment dated 04.01.2012 referred by the CIT in the impugned order, had to deal with the following question of law: "1. Whether the Tribunal was correct in holding that the commissioner exercising Jurisdiction under Section 263 of the Act by holding that the Assessing Officer should rework the credit....
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....t only in a situation where the assessing authority passes an order against the assessee or adverse to the interest of the assessee and no need for the assessing authority to spell out reasons when the order is accepting the claim of the assessee and the learned counsel submit that this is the legal position on authority, we are afraid that to accept a submission of this nature would be to give a free hand to the assessing authority, just to pass orders without reasoning and to spell out reasons only in a situation where the finding is to be against the assessee or any claim put forth by the assessee is denied. 28. We are of the clear opinion that there cannot be any dichotomy of this nature, as every conclusion and finding by the ....