TaxTMI 
TaxTMI 
TaxTMI 
2022 (2) TMI 1207
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....43(3) of the Income-tax Act, 1961 [for short "the Act"]. 2. The shortest issue under this litigation is that, the appellant has challenged the 263 revisionary actions of the Ld PCIT directing the Ld AO for fresh adjudication on account non-conduction of dueinquiry during the course of 143(3) assessment. 3. Before advancing the matter on facts for adjudication, it is essential to reproduce grounds assailedby the appellant as under; "1. The assessment order passed by AO is neither erroneous nor prejudicial to the interest of Revenue. Ld. Pr. CIT erred in invoking the provisions of sec. 263 and in setting aside the assessment order for fresh enquiry. Order passed u/s 263 is unsustainable and is passed without properly appreciating the fact....
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....fore this Tribunal assailing the grounds as laid herein before at para3. 5. After hearing to the rival contention of both the parties; perused material placed on record and duly considered the facts of the case in the light of settled legal position and the case laws relied upon by the appellant assessee as well the respondent revenue. 6. Form the records and the rival contention vis-à-vis submission of both the parties it transpired that; 6.1 The primary issue in the present controversy is twofold, firstly as to whether the order passed by the assessing officer u/s 143(3) can be said to be erroneous and prejudicial to the interest of the revenue within the preview of section 263 of the Act, and secondly whether there was violati....
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....ices placed on paper book page 5-6, sought details & source of cash deposits, which were evidently replied by submission of bank account statements, capital account statements, loan account statements with following details of yearly cash deposits into bank accounts maintained by the assessee; 6.3.2 On a specific query, the assessee submitted that, the cash deposits into his bank accounts were arisen out three deadlock sources namely; Sr Bank A/c Number Amount Deposited Relating A Y 20 15-16 1 SBI Saving 31082210172 9,30,000 2 IDBI Bank 0700104000124041 20,40,000 3 Bank of Baroda 13360100010981 1, 50,000 4 Renuka Sahkari Bank LC-1-000080 33,54,700 Total 64,74,700 a. Receipt from prof....
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....herebetween, Ld PCIT rejected the appellants claim on the premise of celebrated judgement of Hon'ble Lordship of Supreme Court in the case of Malabar Industrial Co Ltd Vs CIT reported at 240 ITR 83and remonstrated the assessment as erroneous and prejudicial to the interest of the revenue pointing out that the relevant para from the aforesaid judgement; "he(AO) accepted the entry in the statement of the account filed by the appellant in the absence of any supporting material and without making any inquiry". Consequently, the matter was remanded back to the file of Ld AO for fresh adjudication on the issues, by conducting necessary inquiries and framing the fresh assessment after affording an adequate opportunities to the assessee. 7. The ....
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....hority in reaching out the allowability or dis-allowability of claim under consideration, e. And finally, the adjudication must ensure the correct application of law as regards to aforesaid following principle of natural justice. 7.2 Before we proceed to adjudicate further, we make a note that, the Hon'ble Lordship in their higher wisdom (to which we always bow down respectfully) in Malabar Industrial Co Ltd (Supra) has used the word "inquiry" and not "enquiry" in tune with that of the legislature intent who has also used the word "inquiry" and not "enquiry" while laying down the provisions of section 263 which is of prime concern here. 7.3 To our limited knowledge the word enquiry and inquiry are dissimilar, the word enquiry means to....
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....ere inquired into from the aforementioned statements with respect to sources there of and upon finding the discrepancies on such inquiries, same was brought to tax as unexplained cash credit u/s 68 for sum of Rs.3, 17, 414/-. 8.2 During the course of revisionary proceedings, it is evident that, the appellant indifferently disclosed "three sources" of cash receipts namely; out of professional receipts, withdrawal from the capital balances of partnership firm and withdrawal from bank loan, and established that there remained no un-disclosure before the lower tax authority. 8. 3 The Ld AR during the course of hearing has taken us through all the statements showcasing that, those were duly verified and inquired into by the Ld AO and he also n....