TaxTMI 
TaxTMI 
2022 (2) TMI 1207
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....the Assessing Officer [for short "AO"] u/s143(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 unsustainabl....
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.... absence of enquiry. 4.3 Against this 263 revisionary order; the appellant assessee is before 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....
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.... the preconditions triggering 263 revisionary proceedings; 6.3.1 During the course of limited scrutiny assessment, the Ld AO through the issue of notices 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 0700104....
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....ithdrawals from partnership firm - M/s Konark Builder and c. Withdrawals from bank loan 6.5 The submission before revisionary proceedings endorsed erstwhile submission made during the course of assessment proceedings and without contrasting therebetween, 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 an....
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....d by detailed inquiry(and not enquiry) by the tax authorities into assessee's eligibility of claim, basis of claim, genuineness of claim and compliance of pre as well post conditions as may be attached to the claim under scrutiny, and d. There should be even-handed application of mind by the adjudicating authority 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 (S....
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....rm and withdrawal from bank loan, and further it was brought to the notice that, during the year under consideration the appellant has purchased a new house property out of the advance sale proceeds received by him against sale of other house property. The records of the assessment undoubtedly reveals that, all the transactions and entries were 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,....